Uganda Passes Scaled-Back Sovereignty Law After Economic Warning
Kampala softened parts of a foreign-influence bill after central bank concerns, but rights groups still warn that broad wording could be used against opposition and civil society.
Uganda’s parliament has passed legislation designed to curb alleged foreign influence, after scaling back earlier provisions that the central bank warned could damage financial inflows. The Protection of Sovereignty Bill now awaits President Yoweri Museveni’s signature.
The bill reflects a long-running argument from Museveni and ruling-party allies that foreign actors influence domestic politics through funding and advocacy. Opposition parties in Uganda have historically received some outside funding, while the government has repeatedly accused critics of advancing foreign agendas.
The law carries penalties of up to 10 years in prison and bans people working on behalf of foreign interests from developing or implementing policy without government approval. It also criminalises promoting the interests of a foreigner against Uganda’s interests.
Rights groups warn that such broad wording could be used to criminalise political opposition or civil society activity. The government says critics are exaggerating the bill’s impact.
The final version softened some provisions after economic pressure. A proposal requiring Ugandans receiving money from abroad to register as foreign agents was amended to focus on people receiving funds for political purposes that advance foreign interests. That change matters because remittances are an important source of foreign exchange for Uganda.
Central Bank Governor Michael Atingi-Ego had warned that the earlier bill could reduce financial flows and risk running down foreign-exchange reserves, calling the potential outcome an economic disaster. The World Bank also warned last month that the bill could expose routine development work to criminal liability.
Uganda’s sovereignty debate is therefore not only ideological. It has direct implications for development finance, political competition, NGOs, remittances and foreign-exchange stability. Kampala has narrowed the bill, but the key test will be how the law is enforced.