Overview:
In a statement issued Thursday, the President said the Bill, as currently framed, “meanders in the areas of the freedom of private enterprise transfers or private money transfers or church donations,” signalling concern that it could interfere with legitimate financial flows.
President Yoweri Museveni has called for an urgent review of the Protection of Sovereignty Bill, 2026, distancing himself from its current provisions and warning that parts of the draft law stray into areas that could undermine Uganda’s free-market economy.
In a statement issued Thursday, the President said the Bill, as currently framed, “meanders in the areas of the freedom of private enterprise transfers or private money transfers or church donations,” signalling concern that it could interfere with legitimate financial flows.
The Protection of Sovereignty Bill, 2026, introduced in Parliament on April 15, seeks to regulate foreign influence and funding in Uganda, with government arguing it is intended to safeguard national interests and self-governance.
However, Mr Museveni suggested the version before Parliament differs from what he originally proposed to Cabinet.
“Which Sovereignty Bill is the noise about? The one I initiated in Cabinet or another one?” he asked, dismissing claims that his proposal intended to block foreign direct investment (FDI), remittances, or external support to religious institutions.
“That is not the Bill I initiated,” he added.
The President emphasised that Uganda’s economic model depends on the free movement of capital, describing it as a cornerstone of growth and resilience.
“The NRM cannot countenance interference with the freedom of movement of capital and money into or out of Uganda,” he said, arguing that such openness has enabled the country to grow despite inefficiencies in public service.
Mr Museveni, who has been in power since 1986, said the original intent of the Bill was to protect Uganda’s sovereignty in decision-making—particularly on political, social, economic, and diplomatic matters—without restricting legitimate financial transactions.
“Sovereignty means: leave us alone so that we make our own decisions,” he said, framing the legislation within the broader historical struggle against colonialism and external control.
His remarks come amid mounting criticism of the Bill from religious leaders, civil society organisations, financial institutions, and opposition politicians, many of whom have warned that its sweeping provisions could hurt the economy and restrict civil liberties.
Critics argue that clauses in the Bill—such as limits on foreign funding and broad definitions of “agents of foreigners”—could deter investment, disrupt NGO operations, and affect remittances from Ugandans abroad.
The President acknowledged the concerns and said he had engaged key government and parliamentary actors to realign the legislation.
“I have talked to Hon. Hamson Obua and the chairpersons of the relevant parliamentary committees to make the Bill concentrate on the sovereignty of policy decision-making,” he said.
He urged lawmakers to avoid provisions that could restrict private sector activity, financial transfers, or religious donations, insisting that Uganda’s economic success has been built on a liberalised financial system.
“None of our policies says: do not send money into or out of Uganda, or stop remittances from Ugandans working abroad,” he said.
The President also cautioned against attempts by external actors to influence Uganda’s internal policy choices through funding, urging that influence should instead be exercised through example rather than coercion.
“Do not fund groups to influence our decisions as a country,” he said.
The Bill is currently before parliamentary committees on Defence and Internal Affairs, and Legal and Parliamentary Affairs, which are reviewing stakeholder submissions before it returns to the House for further debate.
Mr Museveni’s intervention is likely to reshape the ongoing debate, with analysts saying it introduces a new layer of uncertainty about the final form of the legislation.
While reaffirming his support for protecting national sovereignty, the President made it clear that such efforts must not come at the expense of economic stability.
“The freedom of the private sector is our main instrument for growth and socio-economic transformation,” he said.
With consultations ongoing and pressure mounting from multiple stakeholders, Parliament now faces the task of reconciling competing priorities—safeguarding sovereignty while preserving the openness that underpins Uganda’s economy.
