The World Bank has warned that Uganda’s proposed Sovereignty Bill could jeopardize access to billions in international funding, escalating concerns over the country’s economic outlook and investor confidence.
This is as it officially wades into the debate over Uganda’s controversial Protection of Sovereignty Bill, 2026, warning that the proposed law could “materially affect” how international lenders operate within the country.
In a formal submission dated April 23, 2026, addressed to the Clerk to Parliament, the World Bank expressed deep concerns regarding the potential fallout of Bill No. 13.
While the Bank acknowledged Uganda’s sovereign right to regulate foreign actors, it signaled that the current draft risks clashing with international treaties that protect global financial institutions.
The Immunity Conflict.
At the heart of the tension is the legal status of the World Bank’s various arms—including the IBRD, IDA, and IFC. Under long-standing international “Constitutive Documents,” these organizations are granted specific privileges and immunities to ensure they can function without interference from local governments.
These include:Immunity of Bank assets from seizure or attachment, Inviolability of archives and official records, Tax immunity for Bank assets, income, and employee salaries,and Legal immunity for officers and employees in connection with their official acts.
A threat to Partnership ?
The World Bank warned that the Bill, which seeks to regulate the “registration and regulation of agents of foreigners” and the “regulation of funding,” might inadvertently strip away these essential protections. Such a move would not only impact the World Bank but could also disrupt the operations of other Multilateral Development Banks (MDBs) currently providing aid and infrastructure funding to the Ugandan people.
The WBG characterized its submission as a “spirit of partnership and constructive engagement,” but the underlying message is clear: if the Bill restricts the legal and financial safeguards of international donors, the future of development cooperation in Uganda could be in jeopardy.
Parliament’s Joint Committee on Defence and Internal Affairs and the Committee on Legal and Parliamentary Affairs are now tasked with reviewing these comments as the Bill moves toward a final vote.