KAMPALA, Uganda – The World Bank has expressed serious concerns to Uganda’s government about pending legislation that would require individuals and organizations receiving overseas funding to register as foreign agents, warning it could severely impact the bank’s operations in the country.
According to a Reuters-obtained letter, the international lending institution cautioned that the proposed law could interfere with its development work throughout Uganda.
President Yoweri Museveni’s administration presented the bill to parliament on April 15, claiming it aims to safeguard national sovereignty. Under the proposed rules, any Ugandan citizen or organization accepting international funding must register with authorities and report all incoming financial support.
The draft legislation further prohibits foreign agents from actions that could “hinder, frustrate or disrupt the implementation of a government policy” and makes it illegal to create or advocate for alternative public policies without official government authorization.
In correspondence dated April 23 that Reuters reviewed, the World Bank warned the law could make many of its standard “routine development activities” subject to criminal prosecution, including hosting meetings where different policy approaches are explored.
“By classifying international organisations as ‘foreigners’ without qualification, the bill subjects them … to all of its substantive restrictions, registration requirements, financial reporting obligations, and criminal penalties,” the Bank stated.
Information Minister Chris Baryomunsi has not yet responded to requests for comment on the World Bank’s concerns.
The World Bank serves as a significant financial partner for Uganda, maintaining approximately $4.57 billion in active projects throughout the nation.
The institution previously suspended new loans to Uganda in 2023 following the passage of strict anti-homosexuality legislation, but restored funding two years later after government officials agreed to certain modifications.
Violations of the proposed sovereignty legislation could result in substantial penalties, including fines reaching 4 billion Ugandan shillings (equivalent to $1.08 million) and prison terms extending up to two decades.
The measure, currently under review by a parliamentary committee, faces opposition from political rivals, non-governmental organizations, and commercial banking institutions, all arguing it would restrict legitimate international funding streams.
Museveni, Uganda’s leader since 1986, has consistently claimed his political opponents operate as representatives of foreign interests.
