The revised legislation aims to mitigate potential capital flight and currency instability flagged by the Bank of Uganda.
Uganda’s parliament passed a scaled-back version of its sovereignty law after the central bank warned of severe economic consequences. The original bill raised concerns over foreign investment and currency stability, prompting the Bank of Uganda to intervene with risk assessments.
The revised law removes provisions that could have triggered capital flight or disrupted trade agreements. Analysts had warned the initial draft might deter investors and weaken the Ugandan shilling, which has faced pressure in recent months.
No immediate market reaction was reported, but the central bank’s stance suggests a cautious approach to policy changes with macroeconomic implications.