World Bank warns Uganda’s foreign funding law could hinder its work

The World Bank has warned Uganda’s parliament that a proposed foreign-funding law could hinder its work in the country and expose routine development activities to criminal liability.

According to Reuters, the bank sent a letter on April 23 saying the Protection of Sovereignty Bill could interfere with ordinary development operations, including meetings on alternative policy ideas. The bill would require Ugandans receiving money from outside the country to register as foreign agents and disclose incoming funds.

Uganda’s information minister, Chris Baryomunsi, rejected the World Bank’s concerns as unwarranted. He said the bank’s funds are protected, according to Reuters.

The exchange adds international pressure to a bill that has already drawn criticism at home. Parliamentary coverage in Uganda shows the legislation is under committee scrutiny, while opposition lawmakers and other stakeholders have warned it could harm the economy and democratic space.

The timing matters because Uganda relies heavily on external financing and development support. If the bill is adopted in its current form, it could change how foreign-funded groups, remittance flows and development partners operate in the country.

For now, the key question is whether lawmakers amend the proposal, keep it as written, or stall it in committee. The World Bank’s intervention makes clear that the bill is no longer just a domestic political issue; it is now a live test of Uganda’s relationship with major international lenders.