The World Bank has postponed a $90 million loan to Uganda over its anti-gay law that has drawn widespread criticism from Western governments, the United Nations and rights groups.
A bank spokesman said this week that the loan was intended to help the East African nation strengthen its health systems.
He said the bank division that lends to the private sector wants to ensure that the development objectives of the project would not be adversely affected by the enactment of the new law.
President Yoweri Museveni signed the bill earlier this week, saying he wanted to deter Western groups from promoting homosexuality in Africa.
The measure calls for life in prison for those convicted of engaging in gay sex.