Africa-Press. The World Bank has informed the Ugandan government that the proposed legislation regulating the work of individuals and organizations receiving foreign funding will hinder its operations in the country, according to a message reviewed by a local source.
The legislation, submitted by the government to parliament on April 15 with the stated aim of protecting national sovereignty, stipulates that any Ugandan citizen receiving money from abroad must register as a foreign agent and disclose all incoming funds.
The law also states that foreign entities may not “obstruct, undermine, or disrupt the implementation of government policy,” and it criminalizes the development or promotion of alternative public policies without government approval.
In a letter to parliament dated April 23, the World Bank noted that the law could expose a wide range of its “routine developmental activities” to criminal liability, including organizing meetings to discuss alternative policy ideas.
The bank added, “By classifying international organizations as ‘foreign’ without any exceptions, the draft law subjects them to all of its substantive restrictions, registration requirements, financial reporting obligations, and criminal penalties.”
The Minister of Information dismissed the bank’s concerns as unfounded. He stated, “We do not agree with their concerns. Funds from agencies like the World Bank are protected… They need to specify their concerns accurately. Many commentators express their opinions before fully understanding the draft law.”
The World Bank is a major donor to Uganda, with its project portfolio in the country currently valued at approximately $4.57 billion. The bank halted new loans to Uganda in 2023 after the government enacted a strict anti-homosexuality law, but resumed funding two years later after the authorities agreed to some compromises.
Penalties under the proposed sovereignty law include fines of up to 4 billion Ugandan shillings (approximately $1.08 million) and prison sentences of up to 20 years.
The draft law, currently before a parliamentary committee, has faced criticism from opposition politicians, non-governmental organizations, and commercial banks, who argue that it will stifle the flow of legitimate funds into the country.
