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The World Bank has expressed significant concern over a new legislative proposal in Uganda that aims to regulate individuals and organisations receiving international financial support.
Introduced by President Yoweri Museveni’s administration on April 15, the bill requires anyone receiving external funds to register as a “foreign agent” and disclose all incoming capital.
The stated purpose of the law is to protect national sovereignty, yet it specifically prohibits these agents from disrupting government policy or promoting alternative public policies without state approval.
In a letter to the Ugandan parliament, the World Bank cautioned that the bill’s current language could criminalise its standard development operations.
The bank argued that the broad classification of international organisations as “foreigners” subjects them to restrictive registration, financial reporting, and severe criminal penalties.
These warnings come from a major donor with a current project portfolio in Uganda valued at approximately $4.57 billion, highlighting a potential strain on a critical financial relationship.
Despite these warnings, Ugandan Information Minister Chris Baryomunsi dismissed the concerns as unwarranted, suggesting that many critics have not fully understood the legislation.
The bill, which is currently under review by a parliamentary committee, faces additional backlash from NGOs, opposition leaders, and commercial banks.
Critics contend that the proposed penalties—which include fines up to $1.08 million and 20-year prison terms—will stifle the flow of legitimate funding and serve as a tool for the president to target political rivals.
