World Bank urges Uganda to exercise caution over Sovereignty Bill

KAMPALA, April 28, 2026 — The World Bank Group [WBG] has joined individuals and organisations expressing concern over Uganda’s controversial Protection of Sovereignty Bill, 2026.

The Group has warned the Ugandan Parliament that several provisions in the Bill could disrupt the operations of international development institutions and potentially criminalise activities that are central to development work.

In a formal submission to Parliament’s joint Committees on Defence and Internal Affairs, and Legal and Parliamentary Affairs, the Bank said that while it respects Uganda’s sovereign right to legislate in its national interest, the Bill could materially affect how the Bank and other multilateral development banks operate in the country.

The WBG— through its constituent institutions including the International Bank for Reconstruction and Development [IBRD], the International Development Association [IDA], the International Finance Corporation [IFC], the Multilateral Investment Guarantee Agency [MIGA], and the International Centre for Settlement of Investment Disputes [ICSID], noted that the Bill does not clearly distinguish between treaty-based international organisations and other foreign actors targeted by the proposed law.

Concerns over criminalising routine development work

One of the Bank’s principal concerns is that the Bill could criminalise routine policy dialogue and development consultations.

The proposed legislation targets activities undertaken by “agents of a foreigner” aimed at influencing government policy or organising meetings that promote foreign policy positions not adopted by Cabinet.

The World Bank argued that such broad wording could easily encompass ordinary meetings, conferences, and consultations involving development partners, including discussions on lending programmes, policy reforms, and technical assistance.

It warned that even the publication of macroeconomic assessments, fiscal analyses, governance reports, creditworthiness reviews, and policy recommendations could be construed as undermining Uganda’s economic standing, thereby attracting penalties.

Under the Bill, individuals found guilty of such offences could face fines or imprisonment of up to 20 years, while institutions could be subjected to substantial financial penalties.

The Bank further highlighted its legal status as a public international organisation established by member states under international treaties. It stressed that its institutions operate under specific privileges and immunities, including protection of assets, archives, and officials from undue interference, taxation, and legal proceedings in relation to official duties.

According to the World Bank, failure to explicitly recognise these protections could place the Bill in conflict with Uganda’s existing international obligations.

It urged Parliament to refine the legislation to preserve its intended objectives without undermining treaty commitments or disrupting established international development partnerships.

A highly contested Bill

The Protection of Sovereignty Bill was introduced in Parliament on April 15 and seeks to regulate foreign influence by requiring the registration of “agents of foreigners,” restricting foreign funding, and imposing stringent criminal sanctions.

Government has argued that the Bill is intended to safeguard Uganda from undue foreign interference.

However, it has attracted strong criticism from human rights organisations, banking institutions, legal experts, and opposition politicians.

Human Rights Watch has described it as a “Russia-style foreign agents law”, warning that it could threaten freedom of expression and assembly. The organisation further cautioned that the Bill could be used to silence civil society, journalists, and government critics.

The Uganda Bankers Association has also raised concerns, warning that the law could restrict credit flows, undermine investor confidence, and impose significant compliance burdens on banks handling diaspora remittances and international transactions.

Critics have additionally questioned the pace at which Parliament is considering the Bill, noting that it has progressed rapidly towards its second and third readings within days of its first reading, effectively bypassing the standard 45-day consultation period.

Call for refinement

Despite its reservations, the World Bank said it does not oppose legislative oversight of foreign actors operating in Uganda.

Instead, it called for targeted refinements and clearer legal definitions to ensure the law does not unintentionally undermine institutions that support Uganda’s development agenda.

“The refinements and clarifications proposed… would preserve the core objectives of the Bill while ensuring alignment with Uganda’s existing international obligations,” the submission stated.

As debate over the Bill intensifies in the country, parliament now faces growing pressure to strike a balance between safeguarding national sovereignty, maintaining investor confidence, protecting civic freedoms, and sustaining international development partnerships.

https://thecooperator.news/sovereignty-bill-risks-deterring-investment-and-trade-bankers-warn/

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