A bill by Ugandan authorities whose stated purpose is to deter foreign interference has drawn widespread criticism as concern grows over its all-encompassing definition of a foreign agent and its potential to hurt the work of civic groups.

The “Protection of Sovereignty” bill is being examined by lawmakers who could pass it within days despite criticism by banks, traders, the political opposition, civic groups and others who depend on remittances in foreign currency from abroad.

Many critics say the sovereignty bill really seeks to weaken opposition parties and civic groups, which usually depend on foreign grants to do their work in governance and human rights, in a sign of what they see as increasing government repression.

Charles Onyango-Obbo, a prominent Ugandan political commentator, said the bill’s clauses were “unprecedented” in their reach and consequences.

“They redefine who is foreign,” he said. “They extend control from politics into everyday economic and social life.”

The bill’s definition of a foreigner includes “a non-Ugandan citizen” as well as “a Ugandan citizen residing outside Uganda,” in addition to other categories of individuals and companies not domiciled in the East African country. That includes students, businesspeople, migrant workers, diplomats and others who live abroad.

If the bill is passed in its current version, Ugandans abroad would have to register as foreign agents to avoid delays in the processing of transactions through the banks, which would be punished for non-compliance.

Authorities are backing the bill, citing a need for social cohesion and protection from meddlers who would interfere in Uganda’s internal affairs. Opponents say the law, if enacted, would directly or indirectly affect almost every Ugandan at home or abroad.

“It does not protect sovereignty,” Isaac Ssemakadde, president of the Uganda Law Society, said in a statement. “It destroys the sovereignty – the people’s right to self-determination – that belongs to Ugandans.”

The legislation forbids foreign agents from obtaining grants or other monetary support from external sources in excess of 400 million Ugandan shillings – roughly $110,000 today – within a 12-month period without the approval of the interior minister.

In a letter to the office of the attorney general, the Uganda Bankers’ Association warned of a range of consequences for banking operations – notably by introducing other regulators other than the central bank, undermining foreign investment and creating an unpredictable environment for commercial banks.

As most commercial banks have foreign shareholders and borrow offshore, “compliance and reputational risk rise overnight” when routine banking triggers the foreign agent’s label, the group said.

Civic leaders have voiced strong criticism of the bill, which comes months after President Yoweri Museveni won his seventh term. Museveni has repeatedly accused his most prominent rival, Bobi Wine, of being an unpatriotic agent of foreigners. The authoritarian Museveni, 81, has held power since 1986.

“If you want to regulate and close civil society, go in the NGO Act and put that,” Sarah Bireete, the leader of the Centre for Constitutional Governance group, told reporters.

 “If you want to deregister civil society in Uganda, go to the constitution, amend it and say there will be no civil society in Uganda. But to hide behind protection of sovereignty, that you want to control civil society, why don’t you go to the law managing civil society and amend it?”

Wine, who went into hiding after January’s election and is now in temporary exile in the US, denies the charges and asserts that Museveni must be held accountable for his excesses during his long rule. Wine, who has wide support among young people in urban areas, officially took 24.7 per cent of the vote, a result he rejected as fake.

• An AP report