The World Bank Group has said it will pause public financing to Uganda over the country's adoption of the Anti-Homosexuality law.

In May, President Yoweri Museveni signed into law the Anti-Homosexuality Bill, criminalising homosexual activities in the country.

In a statement issued on Tuesday, the World Bank said Uganda's Anti-Homosexuality Act 'fundamentally" contradicts the group's values, adding that no new public financing to Uganda will be presented to its board of executive directors until the efficacy of the additional measures has been tested.

"We believe our vision to eradicate poverty on a liveable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world," the lender said in its statement.

Immediately after the law was enacted in May, the World Bank had deployed a team to Uganda to review its portfolio in the context of the new legislation.

Upon the review, World Bank says it was determined that additional measures are necessary to ensure projects are implemented in alignment with the lender's environmental and social standards.

The US-based lender says its decision is aimed at protecting the sexual and gender minority groups against a law that has been criticised by some human rights groups and the West.

"Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities." World Bank says.

The lender also says it will increase third-party monitoring and grievance redress mechanisms to allow take "corrective action" as necessary.

It should be noted that the World Bank has been under pressure from the U.S Congress to halt new loans for Uganda until the country drops the anti-homosexuality legislation.

Previously, US President Joe Biden warned that Uganda risked facing economic sanctions over the anti-gay law.