World Bank cautions Uganda on Sovereignty bill

• The World Bank warned that the Sovereignty Bill could disrupt how it and other international development banks operate in the country.

• It says the Bill’s broad wording could criminalise normal policy discussions, development meetings, governance reports and economic assessments, with penalties of up to 20 years in prison.

• The Bank also argues that the law may conflict with Uganda’s international treaty obligations by failing to clearly protect the legal immunities of organisations like the World Bank.

The World Bank Group has joined in the growing list of entities coming out to show concern over Uganda’s controversial Protection of Sovereignty Bill, 2026.

The group warned the Ugandan Parliament that some of the bill’s provisions could disrupt the operations of international development institutions and criminalise activities central to development work.

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

The World Bank Group, through its institutions including IBRD, IDA, IFC, MIGA and ICSID, said the Bill does not clearly distinguish between treaty-based international organisations and other foreign actors the law seeks to regulate.

One of the bank’s biggest concerns is that the Bill could criminalise ordinary policy dialogue and development consultations.

The proposed law targets activities by “agents of a foreigner” that seek to influence government policy or organise meetings promoting foreign policy not adopted by Cabinet.

The World Bank argued that this broad wording could easily cover normal meetings, conferences and consultations involving development partners, including discussions on lending, reforms and policy options.

It warned that even publishing macroeconomic assessments, fiscal findings, governance reports, creditworthiness analysis and policy reform recommendations could be interpreted as weakening Uganda’s economic standing and attract penalties.

Under the Bill, individuals could face fines or imprisonment of up to 20 years for such offences, while institutions could face heavy penalties. 

The World Bank also pointed to its legal status as a public international organisation established by member countries under international treaties.

It said its institutions operate with specific privileges and immunities, including protection of assets, archives and officials from undue interference, taxation and legal process tied to official duties.

According to the Bank, the Bill risks clashing with Uganda’s existing international obligations if these protections are not clearly recognised.

It urged Parliament to refine the law so it preserves its intended purpose without undermining treaty commitments or disrupting international development partnerships. 

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

Government says the law is meant to protect Uganda from undue foreign interference.

However, it has faced strong criticism from human rights groups, bankers, lawyers and opposition politicians.

Human Rights Watch described it as a “Russia-style foreign agents law” and warned it threatens freedom of speech and assembly. The group said the Bill could be used to silence civil society, journalists and critics of government. 

The Uganda Bankers Association also warned that the law could freeze credit flows, hurt investor confidence and create major compliance burdens for banks dealing with diaspora remittances and international transactions.

Critics have also questioned Parliament’s speed in handling the Bill, noting that it moved rapidly toward second and third readings within days of its first reading, bypassing the usual 45-day consultation window. 

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

Instead, it called for narrow refinements and legal clarification to ensure the law does not unintentionally harm institutions supporting Uganda’s development priorities.

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

As debate over the Bill intensifies, Parliament now faces growing pressure to balance national sovereignty with investor confidence, civic freedoms and Uganda’s global development partnerships.