Uganda passes revised sovereignty law after bank warning
Uganda passed a revised sovereignty law to curb foreign influence after central bank warnings. The final bill softens rules on reporting international funds.
Uganda's parliament passed a scaled-back sovereignty law late Tuesday to curb foreign influence and funding for political purposes. Lawmakers amended the bill after the central bank warned that stricter rules risked depleting foreign exchange reserves. The legislation creates legal uncertainty for foreign-funded entities and development partners operating within the country.
Central Bank Governor Michael Atingi-Ego warned last week that the legislation risked an economic disaster. He said the bill would diminish financial flows and run down foreign exchange reserves. Remittances from citizens living abroad remain a critical source of foreign exchange for the nation.
