By KT Reporter
President Yoweri Kaguta Museveni has clarified that the proposed Protection of Sovereignty Law does not seek to restrict foreign investment, remittances, or private financial flows, key pillars of the country’s liberalised economic model.
“The Bill I initiated was about what we fought for and what the whole of Africa fought for since 1900, when the whole of Africa, except Ethiopia, had been shamelessly colonised for over 400 years,” said Museveni in a three-page statement issued on Thursday.
Museveni defended his original proposal from widespread claims that it seeks to curb foreign direct investment (FDI), diaspora remittances, and external support to religious and social institutions.
“That is not the Bill I initiated,” he said, stressing that the proposed law is intended to safeguard Uganda’s independence in policy decision-making rather than interfere with private capital or economic freedoms.
Museveni framed the Bill within the historical context of Africa’s anti-colonial struggle, arguing that sovereignty ultimately means the ability of citizens to determine political, social, economic, and diplomatic choices without external pressure, whether financial, ideological, or institutional.
He explained that the sovereignty that they are fighting for is in the form of policy decision-making on political issues, social, and economic issues.
Quoting the late Mwalimu Julius Nyerere of Tanzania, Museveni said Independence means the right to make our own mistakes if necessary and learn from them. He said sovereignty means: ” Please muteleke (leave us alone), so that we make our own decisions. Do not fund groups to influence our decisions as a country,” stated Museveni.
He cited constitutional provisions that vest power in citizens, including Article 1(4) of the Constitution of Uganda, which affirms that sovereignty is exercised through elections and referenda, alongside Articles 59 and 68 governing voting rights and electoral processes.
He went on to warn all and sundry that ” Please do not interfere by word, action, or money in that effort. Policy and ideological decisions can make or break a country.” The government has already moved to soften the Bill following criticism from civil society, the private sector, and development partners.
Attorney General Kiryowa Kiwanuka told Parliament’s joint committees on legal and defence affairs that the legislation has been redrafted to address public concerns.
The revised proposals exempt financial institutions supervised by the Bank of Uganda, licensed medical and educational institutions, and religious organisations.
Kiwanuka said the changes were informed by stakeholder feedback, signalling a degree of responsiveness in a process critics had earlier described as rushed and lacking transparency.
Uganda’s economy remains highly dependent on external financial inflows, making policy clarity critical for market confidence.
According to the World Bank, remittances to Uganda have consistently exceeded $1.3 billion annually in recent years, providing a vital source of household income and foreign exchange.
FDI, particularly in oil, infrastructure, and manufacturing, is central to the country’s growth strategy as it prepares for commercial oil production.
Museveni acknowledged these realities, emphasising that free movement of capital remains a cornerstone of government policy.
“The NRM cannot countenance interference with the freedom of movement of capital,” he said.
“That is our main instrument for growth and socio-economic transformation.”
The debate now shifts to Parliament, which faces the task of reconciling competing constitutional and economic priorities. Under Article 79 of the Constitution, lawmakers are mandated to legislate for the “peace, order, and good governance” of Uganda.
Museveni, however, dismissed identity-based politics, including sectarian divisions along ethnic or religious lines, as a source of past instability, urging a shift toward “politics of interests” focused on economic transformation and wealth creation.
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