In a quick turn-around after public backlash and strong objection from the Bank of Uganda Governor , Michael Atingi-Ego, government through the Attorney General has now introduced major amendments to the controversial Sovereignity Bill exempting key stateholders and narrowing down on the broad proposed clauses with in the new law.<\/p>\n\n\n\n
In the amendements, Ugandan citizens will not be broadly labeled as foreign agents. The amendment now defines foreign agent as individuals who act directly on behalf of foreign entities, under their control, and with financial backing from them. This narrowing appears designed to counter fears that the original bill could be used to target ordinary citizens or civil society actors.<\/p>\n\n\n\n
The bill oulaws political engagement or actions perceived to advance foreign interests in ways that conflict with Uganda\u2019s national priorities while exempting \u2014key sectors of the economy and society. <\/p>\n\n\n\n
The exempted sectors include Ffnancial institutions, media houses, professional bodies, health facilities, academic institutions, and religious organisations as long as their foreign funding supports legitimate, regulated activities..<\/p>\n\n\n\n
Further government in the new amendments highlights that financial inflows such as foreign direct investment, remittances, trade financing, and humanitarian aid will not be restricted unless there is credible suspicion of wrongdoing. This provision if passed will allow and keep Uganda\u2019s attractiveness to international partners and DFIs.<\/p>\n\n\n\n
Authorities will now be required to prove deliberate intent to undermine national interests, marking a departure from earlier wording that critics warned was overly broad and open to abuse.<\/p>\n\n\n\n
The amendments also tighten enforcement language, replacing vague references to \u201ca person\u201d with the more specific \u201cagent of a foreigner,\u201d thereby limiting who can be held liable.<\/p>\n\n\n\n
In a spirited submission before a joint parliamentary committee sitting Governor Atingi-Ego had warned that the bill could force a substantial depreciation of the shilling as imports become relatively more expensive to balance reduced financial inflows against the current account. With fewer excess financial account flows, reserve accumulation would stall, leaving Uganda more vulnerable to external shocks. \u201cA country without reserves is not sovereign,\u201d he stated bluntly.<\/p>\n\n\n\n
Uganda has liberalized its financial account since the 1990s, moving from a controlled regime to one that facilitated foreign direct investment (FDI), remittances, portfolio flows, and correspondent banking relationships. These inflows have helped finance imports, build foreign exchange reserves (recently near US$6 billion), and support balance of payments surpluses, such as the US$1.5 billion recorded in one recent year.<\/p>\n\n\n\n
Non-residents currently hold approximately US$3 billion in Ugandan securities, representing about 12% of the total. This investor base provides a vital financing channel for the government\u2019s fiscal deficit. Uganda\u2019s public debt has grown significantly in recent years, with sustainability hinging on continued access to both domestic and external markets.<\/p>\n\n\n\n
Specific red flags include the UGX 400 million foreign funding cap, far below tier-1 capital requirements for banks (UGX 150 billion), which could restrict capital injections, liquidity management, and correspondent banking.<\/p>\n\n\n\n
Editor:msserwanga@gmail.com<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" In a quick turn-around after public backlash and strong objection from the Bank of Uganda Governor , Michael Atingi-Ego, government<\/p>\n","protected":false},"author":1,"featured_media":17028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[65],"tags":[],"class_list":["post-17027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2026\/04\/download.jpeg","jetpack-related-posts":[{"id":6809,"url":"https:\/\/prowebinhost.com\/anzu\/president-museveni-appoints-maj-gen-kayanja-muhanga-commander-land-forces-promotes-muhoozi-to-rank-of-full-general\/","url_meta":{"origin":17027,"position":0},"title":"PRESIDENT MUSEVENI APPOINTS LT.GEN. KAYANJA MUHANGA COMMANDER LAND FORCES ,PROMOTES MUHOOZI TO RANK OF FULL GENERAL","author":"UgandaUpdate","date":"October 4, 2022","format":false,"excerpt":"Ministry of Foreign Affairs assures Kenya of peaceful co-existence President Museveni has promoted\u00a0and appointed Lt. Gen. Kayanja Muhanga Commander of Land Forces replacing \u00a0Lt Gen Muhoozi Kainerugaba who has been promoted to the rank of full general . According to a statement issued by the UPDF and signed by the\u2026","rel":"","context":"In "Army"","block_context":{"text":"Army","link":"https:\/\/prowebinhost.com\/anzu\/category\/army\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/10\/Museveni-and-Muhoozi.jpeg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/10\/Museveni-and-Muhoozi.jpeg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2022\/10\/Museveni-and-Muhoozi.jpeg 1.5x"},"classes":[]},{"id":7560,"url":"https:\/\/prowebinhost.com\/anzu\/bou-to-regulate-saccos-with-shs1-5b-in-savings\/","url_meta":{"origin":17027,"position":1},"title":"BoU to regulate Saccos with Shs1.5b in savings\u00a0","author":"UgandaUpdate","date":"December 7, 2022","format":false,"excerpt":"Bank of Uganda has proposed amendments to the Microfinance Deposit-Taking Institutions Act to regulate at some 42 Savings and Credit Cooperative Societies (Saccos) whose savings have hit Shs1.5b.\u00a0 The new regulation will be effected under the Micro Finance Deposit-taking Institutions (Registered Societies) Regulations, 2022. \u00a0 Dr Tumubweinee Twinemanzi, \u00a0the Bank\u2026","rel":"","context":"In "Finance"","block_context":{"text":"Finance","link":"https:\/\/prowebinhost.com\/anzu\/category\/finance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13756,"url":"https:\/\/prowebinhost.com\/anzu\/museveni-hits-back-at-supreme-court-over-court-martial-popular-ruling\/","url_meta":{"origin":17027,"position":2},"title":"Museveni Hits Back At Supreme Court Over Court Martial Popular Ruling","author":"UgandaUpdate","date":"February 3, 2025","format":false,"excerpt":"Uganda\u2019s President Yoweri Museveni has hit back at the Supreme Court for its ruling that military courts were constitutionally not empowered to try civilians, insisting that the system must remain in place for national security. In a statement made after the ruling, Museveni expressed his disappointment, arguing that the decision\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/02\/download-1.jpg","width":350,"height":200},"classes":[]},{"id":15017,"url":"https:\/\/prowebinhost.com\/anzu\/tanzania-bans-non-citizens-from-running-retail-businesses-as-eac-economic-integration-hangs-in-balance\/","url_meta":{"origin":17027,"position":3},"title":"Tanzania bans non-citizens from running retail businesses as EAC economic integration hangs in balance","author":"UgandaUpdate","date":"July 29, 2025","format":false,"excerpt":"The Tanzanian government has issued a sweeping ban on foreigners operating in at least 15 business sectors traditionally reserved for locals, in a move aimed at protecting indigenous entrepreneurs. The directive, officially titled\u00a0The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was signed by Minister of Industry and\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/07\/SMEs-in-Tanzania.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/07\/SMEs-in-Tanzania.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/07\/SMEs-in-Tanzania.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/07\/SMEs-in-Tanzania.jpg 2x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2025\/07\/SMEs-in-Tanzania.jpg 3x"},"classes":[]},{"id":1217,"url":"https:\/\/prowebinhost.com\/anzu\/parliament-passes-local-content-law\/","url_meta":{"origin":17027,"position":4},"title":"PARLIAMENT PASSES LOCAL CONTENT LAW","author":"UgandaUpdate","date":"May 22, 2020","format":false,"excerpt":"By Ugandaupdatenews Team The Uganda Parliament has passed the long awaited \u00a0National Local Content Bill, 2019 which prioritises Ugandan citizens and companies in procurement and award of contracts to develop local capacity and create jobs . The Local Content law the first to be passed by parliament was supported by\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-1.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-1.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-1.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-1.jpg 2x"},"classes":[]},{"id":1221,"url":"https:\/\/prowebinhost.com\/anzu\/parliament-passes-local-content-law-2\/","url_meta":{"origin":17027,"position":5},"title":"PARLIAMENT PASSES LOCAL CONTENT LAW","author":"UgandaUpdate","date":"May 22, 2020","format":false,"excerpt":"By Ugandaupdatenews Team The Uganda Parliament has passed the long awaited \u00a0National Local Content Bill, 2019 which prioritises Ugandan citizens and companies in procurement and award of contracts to develop local capacity and create jobs . The Local Content law the first to be passed by parliament was supported by\u2026","rel":"","context":"In "National News"","block_context":{"text":"National News","link":"https:\/\/prowebinhost.com\/anzu\/category\/national-news\/"},"img":{"alt_text":"","src":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-2.jpg","width":350,"height":200,"srcset":"https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-2.jpg 1x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-2.jpg 1.5x, https:\/\/prowebinhost.com\/anzu\/wp-content\/uploads\/2020\/05\/Speaker-Kadaga-makes-a-ruling-2.jpg 2x"},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/pc0aOV-4qD","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/17027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/comments?post=17027"}],"version-history":[{"count":1,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/17027\/revisions"}],"predecessor-version":[{"id":17030,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/posts\/17027\/revisions\/17030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media\/17028"}],"wp:attachment":[{"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/media?parent=17027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/categories?post=17027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prowebinhost.com\/anzu\/wp-json\/wp\/v2\/tags?post=17027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}