Uganda’s Parliament is set to debate the proposed NGO Funding Act, with political leaders and civil society actors calling for greater financial independence of non-governmental organisations through sustainable local funding.
The bill seeks to reduce NGOs’ heavy reliance on foreign aid by promoting domestic financing mechanisms, a move supporters say would strengthen the resilience and long-term impact of Uganda’s civil society sector.
Nyanzi Martin Luther, founder of Apex Digital Skills, has strongly backed the proposal, criticising continued dependence on external donors despite local tax contributions. “We are tired of seeing European Union funding NGOs in Uganda, yet we pay tax here,” Nyanzi said, urging lawmakers to pass the bill to enable NGOs to thrive on locally generated resources.
Political figure Mathias Walukaga also welcomed the emphasis on domestic funding but cautioned against provisions that could undermine NGO independence.
He stressed that while sustainability is essential, organisations must retain the autonomy needed to innovate and respond effectively to community needs, warning that excessive state control could weaken civil society.
Support for the bill was echoed by National Unity Platform (NUP) legislator Elias Nalukoola, who described the proposed law as central to Uganda’s future development planning. “This is what will be in the new Uganda as we plan for the country,” Nalukoola said, highlighting the role of a self-reliant civil society in national transformation.
Development finance expert Dr Grace Nakato noted that the legislation should be embedded within a broader policy framework that includes tax incentives, capacity building, and stronger public-private partnerships to stimulate domestic philanthropy. Without such reforms, she warned, NGOs would continue to face persistent funding uncertainty.
Estimates indicate that up to 70 percent of NGO financing in Uganda currently comes from foreign sources, leaving organisations vulnerable to shifting donor priorities. Proponents say the NGO Funding Act aims to address this imbalance by incentivising local donations and establishing supportive government mechanisms.
As parliamentary debate approaches, the proposed law has sparked wider discussion about the future of civil society in Uganda and the need for locally driven development models that ensure sustainability while preserving the independence and effectiveness of NGOs.
