Ugandan President Yoweri Museveni signed a new law on Sunday aimed at curbing foreign influence. The "Protection of Sovereignty" bill imposes prison sentences and fines for promoting foreign interests against national aims. Parliament adopted the legislation on May 5.
The law criminalises promoting the interests of a foreigner against Uganda. It also prohibits anyone working for foreign interests from developing or implementing policy without government approval. Critics warn this broad language could suppress political opposition, a claim the government dismisses.
President Museveni, in power since 1986, has long expressed concern over external interference. He has accused domestic rivals of receiving foreign funding. The new law's penalties include up to 10 years in prison. It also carries significant cash fines for violations.
Earlier versions of the bill faced strong opposition. Financial institutions warned it could disrupt vital money transfers, known as remittances. Remittances are a crucial source of foreign exchange for Uganda. The Central Bank governor, Michael Atingi-Ego, called such a scenario an "economic disaster." The World Bank also criticised initial proposals. It stated they could criminalise routine development activities.
Parliament amended some clauses before the bill's final passage. One change altered a requirement for all Ugandans receiving money from abroad. This requirement now only applies to those receiving funds for political purposes that advance foreign interests. The Central Bank and World Bank have not yet commented on the amended legislation.
The law's impact on future foreign investment and the nation's financial stability remains a key watch point. Decision-makers in Uganda and international financial bodies will closely monitor its enforcement. The government aims to protect its sovereignty. However, concerns persist about potential overreach and economic consequences.