Sovereignty Bill 2026: What it means for NGOs, Investment and Uganda’s development path
This would affect their capacity to conduct research, support communities and contribute meaningfully to national development.
Op-Ed: On April 15, 2026, the State Minister for Internal Affairs tabled the Protection of Sovereignty Bill, 2026 before the parliament for debate and enactment. This bill seeks to assign the department of peace and security the responsibility to register and regulate “agents of foreigners”, including overseeing their operations and funding.
While thegovernment’s intention to safeguard Uganda’s sovereignty is understandable,the proposed law raises serious concerns. If passed in its current form, it could negatively affect its citizens across the country as well as Non-Governmental Organizations (NGOs), particularlythose promoting green economic alternatives such as organic agriculture, sustainable tourism, clean energy among others. These sectors are not only vital for environmental sustainability but are also central to Uganda’s economic future.
The Bill risks limiting funding flows, restricting citizen-led research and weakening public participation, yet these are key elements required for Uganda to achieve its ambitious economic targets. Therefore, this bill may unintentionally undermine the green economic sectors that are essential for inclusive and sustainable growth, instead of strengthening national development.
These concern becomes even more significant when viewed in the context of Uganda’s long-term development strategy. The Fourth National Development Plan (NDP) IV waslaunched on June 5, 2025 by president YoweriKagutaMuseveni.The goal of the plan which lays a ten-fold growth strategy for the country is to achievea higher household income, full monetization of the economy, and employment for sustainable socio-economic transformation.
To achieve thesegoals, the NDP IV prioritizes high impact sectors such as agriculture, tourism and other green economy areas. Agriculture alone contributes about 26.1% of Uganda’s GDP and employs the majority of the population. Available information also indicates thatgovernment aims to attract approximately $1.4 billion in investment for the sector. However, achieving this level of investments, it requires a supporting environment that encourages both domestic and foreign financing.
In this regard the sovereignty bill could have un intended consequences. Uganda depends heavily on both domestic and foreign financing to support these development initiativesby placing restrictions on funding sources especially for organizations involved in research, advocacy and community engagement, the bill may discourage investment and limit innovation. This is particularly concerning because citizens are often invited by institutions such as the Ministry of Finance and parliament among other entities to participate in the national budgeting processes and contribute to policy discussions. For their participation to be meaningful, they must conduct research, often funded by legitimate sources including international partners.
The potential impact is also evidentin the tourism sector, one of the Uganda’s leading sources of foreign exchange. In 2025, the sector earned Uganda a record-breaking Shs. 6.1 trillion (USD 1.7 billion) and attracted 1.65 million visitors. Further, according to the Uganda Bureau of Statistics’ Tourism Satellite Account, the tourism sector employs 1.6 million people, accounting for 14.7% of jobs in Uganda. Under the NDP IV, the sector is expected to play a major role in helping the country earn USD 50 billion by 2029/30.
However, the Protection of Sovereignty Bill, 2026 could make it difficult for tourism sector stakeholders to publicly share research and other forms of information on challenges affecting the sector. Limited information sharing could hinder improvements, reduce investor’s confidence and ultimately lead to lower foreign exchange earnings, job losses and reduced economic resilience.
Furthermore, NGOs play a vital role in Uganda’s development where they invest in environmental conservation including the protection and restoration of forests and wetlands, support value addition in farming communities, pay taxes and promote climate justice. They also collaborate closely with government institutions such as NEMA, Ministry of lands, Ministry water and environment among others to improve livelihoods.
Given the scale of NGOs contributions, imposing strict funding limits, wouldsignificantly constrain their operations and reduce their impact. The billdirectly affects NGOs because many of them rely on partnerships and funding from both domestic and international sources to implement development programs.
Therefore, if the bill is passed in its current form without careful revision, its strict registration requirements, funding controls and potential caps on financial support could significantly limit their ability to operate effectively. This would affect their capacity to conduct research, support communities and contribute meaningfully to national development.
Moreover, the protection of sovereignty bill,2026could harm Uganda’s green economic growth and potentially undermine citizen constitutional rights includingself-determination, freedoms of association and the right to earn a living. Therefore, the government should ensure the bill does not weaken the very systems that drive development. It should allow NGOs and citizens to access funding, conduct research and participate meaningfully in national development processes. This will help protect Uganda’s sovereignty without undermining investments, innovation and progress in key green economic sectors essential for achieving the goals of NDP IV
In conclusion, Uganda’s ambition to achieve tenfold economic growth under the NDP IV depends on strong partnerships, active citizen engagement and sustained investment in priority sectors such as tourism and agriculture. Awell-balanced and inclusive approach to the protection of the sovereignty bill, 2026, will ensure that Uganda protects its national interests while still promoting its sustainable growth, job creation and improved livelihoods for its people.
The author is Olive Atuhaire, Environmentalist
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