Uganda Shilling Slides as Donors Cut Aid on Anti-Gay Law

Uganda’s shilling fell the most since March 2012 against the dollar after donors started cutting aid after President Yoweri Museveni signed a law that imposes life sentences on some homosexual acts.

Norway is withholding aid and Denmark said it will redirect assistance to private industries, while Swedish Finance Minister Anders Borg is reconsidering his nation’s program. That comes after Standard & Poor’s cut Uganda’s credit rating last month on concern that the budget deficit will widen as spending increases and donors including the World Bank, the U.K. and Ireland suspended support in 2012 because of corruption. Africa’s biggest coffee exporter relies on donors for about 20 percent of its annual budget.