Politics 30 April 2026 Daily Monitor (Uganda)
Bank of Uganda Warns Sovereignty Bill Could Spark Economic Chaos Amid Government Rift
The Bank of Uganda has cautioned that the proposed Protection of Sovereignty Bill, 2026, risks causing major economic disruptions by curbing financial inflows and investor trust, directly contradicting the Finance Ministry's assurances of no adverse effects. This discord highlights coordination failures among key state bodies as the bill advances in Parliament. Source: https://www.monitor.co.ug/uganda/news/national/sovereignty-bill-exposes-gaps-in-govt-coordination-5442888
The proposed Protection of Sovereignty Bill, 2026, has revealed deep divisions within Uganda’s government institutions. While the Finance Ministry assured lawmakers the legislation poses no economic threat, Bank of Uganda Governor Dr. Michael Atingi-Ego warned of severe fallout during parliamentary hearings.
Dr. Atingi-Ego, addressing a joint committee on Defence and Legal Affairs, stated the bill’s aim to protect national autonomy could come at a steep price. He highlighted risks to financial inflows, foreign investor confidence, and overall macroeconomic stability, creating ‘radical uncertainty and voluntary shocks.’
This stance clashes with State Minister for Planning Amos Lugoloobi’s April 15 Certificate of Financial Implication, which claimed the bill would bolster policy autonomy, security, and governance without harm.
Tabled by David Muhoozi, the bill regulates foreigners and their agents, potentially limiting funds. BoU fears it could hit Uganda’s Balance of Payments, which saw a $1.5 billion surplus in 2024/2025, driven by a $4.6 billion financial account gain.
Key concerns include disruptions to $1.5 billion in 2025 remittances and $420.8 million in NGO funding. The bill’s broad ‘foreigner’ definition might even affect Ugandans abroad sending money home, while funding caps around $106,000 clash with goals for a $500 billion economy by 2040.
Dr. Atingi-Ego stressed that past growth relied on financial openness, warning the bill could reverse this by burdening NGOs and locking out Shs5.1 trillion in external aid, straining services.
Finance Ministry officials did not respond to queries on the rift. The parliamentary committee has finished consultations and awaits its report for further readings. Notably, the bill lacks full funding, with Shs29.1 billion needed against Shs14.5 billion allocated.