World Bank objects to Uganda bill to regulate purported foreign agents
World Bank's Concerns Over Uganda's Proposed Foreign Agents Bill
By Elias Biryabarema
Background of the Legislation
KAMPALA, April 28 (Reuters) - The World Bank has told Uganda's government that proposed legislation to regulate people and organisations that receive foreign funding will hinder its work in the country, according to a letter seen by Reuters.
The legislation, introduced in parliament by President Yoweri Museveni's government on April 15 with the stated goal of protecting national sovereignty, says any Ugandan receiving money from outside the country must register as a foreign agent and disclose all incoming funds.
Key Provisions of the Bill
It also says foreign agents cannot "hinder, frustrate or disrupt the implementation of a government policy" and criminalises the development or promotion of alternative public policies without the approval of the government.
World Bank's Response
In a letter to parliament dated April 23 and seen by Reuters, the bank said the law could expose to criminal liability a broad range of its "routine development activities", including organising meetings in which alternative policy ideas are discussed.
Potential Impact on International Organisations
"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 said.
Ugandan Government's Reaction
Information Minister Chris Baryomunsi dismissed the bank's concerns as unwarranted.
"We don't agree with their fears. Funds from agencies like the World Bank are protected... They need to be particular where their concerns are. Many commentators are giving views before thoroughly internalising the bill," he told Reuters.
Implications for Uganda
The World Bank as a Major Donor
MAJOR DONOR
The World Bank is a major donor to Uganda, and currently has a project portfolio in the country of about $4.57 billion.
Recent Lending History
The bank halted new lending to Uganda in 2023 after the government enacted a harsh anti-homosexuality law but resumed funding two years later after authorities agreed to some compromises.
Penalties and Criticism of the Bill
Punishments under the proposed sovereignty law include fines of as much as 4 billion Ugandan shillings ($1.08 million) and prison sentences of up to 20 years.
The bill, which is currently before a parliamentary committee, has drawn criticism from opposition politicians, non-governmental organisations and commercial banks, who say it would stifle the flow of legitimate funds into the country.
Political Context
Museveni, who has been in power since 1986, has long accused political rivals of being agents of foreign powers.
($1 = 3,715.0000 Ugandan shillings)
(Reporting by Elias Biryabarema; Editing by Aaron Ross and Gareth Jones)
