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A key feature of the bill is its expansion of state oversight into digital platforms, effectively bringing online activism, advocacy, and civic engagement under government regulation.
Ugandan Parliament
The proposed law would require individuals and organisations receiving foreign funding to register with a designated department under the Ministry of Internal Affairs. This process involves rigorous vetting procedures, including disclosure of identity, financial records, and professional affiliations.
Financial controls are central to the bill. It proposes a cap of approximately Shs 400 million in annual foreign funding without prior ministerial approval and mandates monthly reporting by banks and money transfer services on transactions linked to affected entities.
Additionally, organisations operating in critical sectors such as education, health, water, and infrastructure would need Cabinet authorisation before undertaking activities if they receive foreign funding.
One of the most contentious elements of the bill is the introduction of new criminal offences, including “economic sabotage.” The offence is broadly defined to include publishing or disseminating information deemed to undermine Uganda’s economic stability, as well as mobilising opposition to government policy without prior approval.
Penalties under this provision are severe, with individuals facing up to 20 years in prison, while organisations risk substantial fines and potential confiscation of funds.
Critics argue that such provisions are overly broad and could be used to target journalists, researchers, civil society actors, and ordinary citizens, thereby restricting fundamental freedoms such as expression, association, and access to information.
Government officials have defended the bill as a necessary safeguard against foreign interference and covert influence operations, framing it as part of a broader national security strategy.
Efforts to fast-track the legislation have included a high-level coordination meeting involving Minister David Muhoozi and Attorney General Kiryowa Kiwanuka with the Speaker of Parliament.
Despite mounting criticism, the bill appears to have strong backing within Parliament, particularly from the ruling National Resistance Movement (NRM) and parliamentary leadership.
The proposed legislation has also triggered alarm within Uganda’s financial sector.
Bank of Uganda Governor Michael Atingi-Ego warned lawmakers that passing the bill in its current form could result in severe economic consequences, describing its provisions as introducing “voluntary shocks” that could reverse decades of financial sector progress.
Appearing before the Joint Committee on Legal and Defence Affairs, Atingi-Ego raised concerns about requirements for ministerial approval of cross-border financial transactions, noting that such measures could undermine banking secrecy and the independence of the Central Bank.
He cautioned that the immediate fallout could include the withdrawal of offshore investors, who currently hold an estimated USD 3 billion in government securities. Such a move, he warned, would likely weaken the Ugandan shilling, increase import costs, and destabilize the economy.
“A country without reserves is not sovereign,” he said, highlighting risks to Uganda’s USD 6 billion in foreign reserves and its USD 1.5 billion balance of payments surplus.
Beyond short-term shocks, he emphasized that Uganda requires approximately USD 50 billion in foreign capital annually to meet its long-term growth ambitions.
Restrictive financial controls, he said, could push transactions into informal channels, increase exposure to international financial scrutiny, and potentially result in Uganda being placed on global monitoring “grey lists,” along with the loss of correspondent banking relationships.
Civil society organisations, legal experts, and economic stakeholders have echoed similar concerns, warning that the bill’s expansive scope and regulatory burden could deter foreign investment and disrupt donor-funded programmes, particularly in sectors heavily reliant on international partnerships.
, https://eastafricanwatch.net/mp-katabaazi-criticizes-the-current-form-of-sovereignty-bill-says-it-has-gaps/?utm_source=rss&utm_medium=rss&utm_campaign=mp-katabaazi-criticizes-the-current-form-of-sovereignty-bill-says-it-has-gaps
