Entrepreneur and investor Ron Kazooba Kawamara has raised strong objections to provisions in the proposed Sovereignty Bill, warning that parts of the legislation could undermine investment, disrupt financial flows, and introduce unconstitutional restrictions on economic activity.
Kawamara, a former Jumia Uganda chief executive and now an investor through his holding firm Hugamara, argued that the requirement for citizens and businesses to obtain approval from the Minister of Foreign Affairs before completing transactions exceeding UGX 400 million annually amounts to what he termed “prior restraint” on economic activity.
He said the approach assumes wrongdoing before it occurs, a practice he described as inconsistent with constitutional principles.
“Requiring a Ugandan citizen or business to obtain a Minister’s permission before conducting a transaction of UGX 400 million in a calendar year is a prior restraint. It assumes one is going to commit a crime and therefore must be restricted before the crime is committed,” Kawamara said.
He further questioned provisions that would penalise banks through fines or imprisonment for processing transactions linked to what the bill defines as “foreign agents” without prior ministerial approval.
According to the draft, a foreign agent could include any individual outside the country at the time of a transaction, with discretionary powers granted to the minister to designate individuals as foreign.
Kawamara warned that such definitions could introduce uncertainty into Uganda’s financial system and discourage international investment.
“If you have raised money from venture capital funds or equity investors, you know money does not wait for red tape or a minister to approve a business proposal or funding,” he said, adding that existing laws such as the Anti-Money Laundering Act and the NGO Act already provide mechanisms to regulate illicit financial flows.
The investor also broadened his remarks to the political and civic space, arguing that organisations affected by the bill—including NGOs, civil society groups, and political movements—often operate within a commercial ecosystem shaped by both domestic and foreign funding.
“NGOs, social activists, and political parties whose funding this law is designed to regulate are just businesses in disguise,” he said.
In remarks that have drawn attention, Kawamara suggested that foreign funding often circulates informally within Uganda’s economy, benefiting individuals and communities beyond the stated objectives of donors.
He argued that instead of criminalising such flows, policymakers should consider regulating and taxing them to reflect economic realities.
“Let the money from foreigners come in. If foreign actors think they are funding activists or NGOs, yet it ends up supporting local livelihoods, why stop it?” he posed.
Kawamara maintained that Uganda should focus on balancing regulation with economic flexibility, warning that excessive controls could deter investment and innovation in a digital economy that relies heavily on fast-moving capital.
He expressed confidence that Parliament would revisit and amend the contentious provisions, suggesting that President Yoweri Museveni’s administration would provide guidance toward a more balanced framework.
The Sovereignty Bill continues to spark debate among policymakers, legal experts, and business leaders, with critics warning of potential impacts on investment, financial transparency, and civil society operations.