Uganda Central Bank Warns Sovereignty Law Risks Inflation
Governor Michael Atingi-Ego warned that the Sovereignty Bill could drain reserves and trigger inflation. The law requires foreign fund recipients to register.
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Uganda Central Bank Governor Michael Atingi-Ego warned a proposed sovereignty law could deplete foreign exchange reserves and spike inflation. The Protection of Sovereignty Bill, 2026, which was introduced to parliament on April 15, requires any Ugandan receiving foreign funds to register as a foreign agent, acquire a certificate from the government and disclose all incoming funds among other provisions. Investors face a weakening Ugandan Shilling and destabilized balance of payments if capital inflows diminish.
