Uganda's Cabinet to Harmonize Sovereignty Bill Before Tuesday's Parliamentary Readings

He rejected suggestions that the bill seeks to restrict foreign direct investment, remittances, or religious funding. Museveni emphasized that Uganda remains a free-market economy. President Yoweri Museveni noted that private sector activity is central to national development.

He stated that foreign exchange continues to be freely traded through private bureaus. Museveni added that legally earned money can move in and out of the country without hindrance. President Yoweri Museveni held discussions with Denis Hamson Obua and relevant parliamentary committee leadership.

He directed that the bill be refined to focus on sovereignty in policymaking while protecting private enterprise. The draft legislation was tabled by State Minister for Internal Affairs David Muhoozi. The bill includes provisions for enhanced government oversight of digital platforms and civic engagement.

It also mandates registration and vetting of foreign-funded entities. Additional measures include restrictions on foreign funding without ministerial approval and strict monthly reporting requirements for financial institutions. The bill introduces the offence of economic sabotage, defined to include publishing information deemed harmful to economic stability or mobilizing opposition to government policy without prior approval.

Governor of the Bank of Uganda Michael Atingi-Ego warned that the bill could have far-reaching economic consequences including capital flight, weakening of the shilling, and reduced investor confidence. Atingi-Ego cautioned that Uganda's external financial stability could be affected due to reliance on foreign capital inflows.

Attorney General Kiryowa Kiwanuka has proposed amendments exempting financial institutions supervised by the Central Bank, as well as medical, educational, and religious institutions, from the scope of the bill.

Majority members of the joint committees on Legal and Parliamentary Affairs and Defense and Internal Affairs have agreed to support the bill adopting revisions proposed by the Attorney General, according to parliamentary sources. The Joint Committee is chaired by Wilson Kajwenge and co-chaired by Stephen Baka Mugabi.

Legislators have been meeting since Friday at Munyonyo Commonwealth Resort to compile their report ahead of presentation to Parliament.

The position has been backed by some opposition Members of Parliament, including representatives from the Forum for Democratic Change (FDC) and Uganda People's Congress (UPC). Deliberations have been marked by tension, with reports of chaos and a brief scuffle breaking out after the Committee Chair allegedly pushed for adoption of the Attorney General's amended draft without a thorough clause-by-clause review of stakeholder submissions.

Disagreements prompted heavy deployment of security personnel, who remain stationed at the venue as report writing continues.

AllAfrica reported these developments based on interviews and parliamentary sources.