Introduction#

The World Bank has expressed concerns regarding a proposed law in Uganda that aims to regulate foreign funding. This legislation could potentially hinder the Bank's operations within the country, as outlined in a letter dated April 23.

Details of the Proposed Legislation#

Introduced on April 15 by President Yoweri Museveni’s government, the law mandates that any Ugandan receiving foreign funds must register as a foreign agent and disclose all incoming financial support. The government claims this measure is intended to protect national sovereignty.

The law also prohibits foreign agents from interfering with government policies and criminalizes the development or promotion of alternative public policies without prior government approval. This means that discussions around different policy ideas could be seen as illegal if they do not align with the government's stance.

World Bank's Concerns#

In its communication to parliament, the World Bank highlighted that the proposed law could expose many of its routine development activities to criminal charges. This includes organizing meetings to discuss alternative policy ideas, which could be classified as a violation under the new regulations.

The Bank pointed out that by labeling international organizations as 'foreigners' without any qualifications, the legislation imposes significant restrictions and penalties on them, including registration and financial reporting requirements.

Potential Consequences#

The proposed law carries severe penalties, including fines of up to 4 billion Ugandan shillings (approximately $1.08 million) and prison sentences of up to 20 years. Currently, the bill is under review by a parliamentary committee and has faced criticism from opposition politicians, non-governmental organizations, and commercial banks, who argue that it could limit the flow of legitimate funds into Uganda.

President Museveni has been in power since 1986, and this legislation marks another significant moment in the ongoing dialogue about governance and foreign aid in the country.