Ugandan President Yoweri Museveni has signed into law a controversial bill aimed at curbing foreign influence in the East African nation, despite warnings from critics and economic officials that the measure could damage investment flows and undermine the economy.
The legislation, known as the “Protection of Sovereignty Act,” was signed late Sunday, according to a statement from the presidency, days after it was passed by parliament dominated by Museveni’s ruling National Resistance Movement (NRM).
The law criminalises the promotion of what it describes as “the interests of a foreigner against the interests of Uganda” and imposes strict controls on individuals or organisations deemed to be acting on behalf of foreign entities.
Under the new law, foreign agents operating in Uganda must formally register with authorities, while individuals or groups linked to foreign interests are prohibited from participating in policy development or implementation without prior government approval.
Violators face penalties including prison terms of up to 10 years and heavy financial fines.
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The measure has triggered concern among civil society groups, opposition figures and international development partners, who say the broadly worded legislation could be used to silence dissent and restrict the activities of non-governmental organisations.
Critics argue that the law mirrors similar foreign agent legislation introduced in countries accused of shrinking civic space and targeting activists, journalists and opposition movements.
Museveni, 81, who has ruled Uganda since 1986, has repeatedly accused foreign governments and organisations of meddling in Uganda’s domestic affairs and supporting political opponents seeking to destabilise his administration.
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Speaking in recent months, the veteran leader insisted Uganda must protect its sovereignty from what he described as external interference disguised as democracy promotion or human rights advocacy.
The legislation comes amid heightened political tensions following Uganda’s disputed presidential election earlier this year, in which Museveni extended his decades-long rule after securing another term in office.
Opposition parties and rights organisations have long accused the government of suppressing critics through arrests, intimidation and restrictive laws — accusations authorities routinely deny.
Economic officials, however, have also expressed unease over the potential consequences of the law.
Uganda’s central bank governor, Michael Atingi-Ego, warned lawmakers before the bill’s passage that the legislation risked discouraging foreign investment and reducing financial inflows into the country.
In comments cited by local media, Atingi-Ego cautioned that the law could trigger an “economic disaster for our country” by affecting donor funding, foreign exchange reserves and investor confidence.
Uganda relies heavily on foreign aid, remittances and external financing to support key sectors including healthcare, infrastructure and agriculture.
International financial institutions also voiced concern.
The World Bank criticised the legislation, saying its broad provisions could expose development agencies, charities and aid organisations to criminal liability for carrying out routine activities.
Analysts say the uncertainty created by the law could complicate Uganda’s relations with donors and development partners at a time when the government is seeking investment to support economic growth and major oil projects.
Rights groups warned that the vague wording of the legislation leaves room for selective enforcement and could have a chilling effect on free speech and political activity ahead of future elections.
Despite the criticism, government officials defended the measure as necessary to safeguard Uganda’s national interests and protect the country from undue foreign influence.
The presidency said the law was intended to preserve sovereignty and ensure that policymaking remains under the control of Ugandans.
Museveni’s government has in recent years introduced several controversial laws that have drawn condemnation from Western governments and human rights organisations, including legislation targeting LGBTQ rights and tighter regulations on civil society organisations.
Observers say the latest law is likely to deepen concerns over democratic freedoms and governance in Uganda while raising fresh questions about the country’s investment climate.
