Uganda’s proposed legislation, aimed at regulating individuals and organisations receiving foreign funding, has drawn significant concern from the World Bank. Introduced by President Yoweri Museveni’s government on April 15, with the stated goal of protecting national sovereignty, the bill mandates that any Ugandan receiving overseas money must register as a foreign agent and disclose all incoming funds. The World Bank, a global financial institution providing financial and technical assistance to developing countries, aims to reduce poverty and support development. It has cautioned that the new law could severely impede its operations.
In an April 23 letter, the World Bank stated the legislation risked exposing its “routine development activities” to criminal liability, including organising meetings discussing alternative policy ideas. The bank highlighted that by classifying international organisations as “foreigners,” the bill subjects them to its substantive restrictions, registration requirements, financial reporting obligations, and severe criminal penalties. Furthermore, the bill stipulates foreign agents cannot “hinder, frustrate or disrupt the implementation of a government policy” and criminalises alternative policy promotion without government approval. Punishments include fines up to 4 billion Ugandan shillings ($1.08 million) and prison sentences of up to 20 years.
Uganda’s Information Minister Chris Baryomunsi dismissed the World Bank’s apprehensions as unwarranted, stating that funds from agencies like the World Bank are protected. This comes despite the World Bank being a major donor to Uganda, currently overseeing a project portfolio worth approximately $4.57 billion. While new lending was temporarily halted in 2023 over an anti-homosexuality law, funding later resumed after compromises. The bill, currently before a parliamentary committee, has also attracted criticism from opposition politicians, non-governmental organisations, and commercial banks, who warn it could stifle legitimate financial flows. President Museveni has frequently accused political rivals of acting as foreign agents.
