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NGOs Reopening to Inject Fresh Dollar Inflows, Give Uganda’s Economy a New Lease of Life

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NGOs Reopening to Inject Fresh Dollar Inflows, Give Uganda’s Economy a New Lease of Life
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What the report says

KAMPALA — Uganda is set to begin reopening a number of suspended non-governmental organisations within two weeks, a move the published report says could revive an important source of foreign-exchange inflows and support local economic activity. The directive came from Internal Affairs Minister Prof. Ephraim Kamuntu on November 10, who instructed the NGO Bureau to assess affected groups individually and clear those that have addressed compliance concerns.

The suspensions, imposed on January 9, 2026, affected several prominent civil society organisations, including Chapter Four Uganda, ACFIM, HRNJ-U, the National NGO Forum, the Centre for Constitutional Governance, the National Coalition of Human Rights Defenders and ACTV. According to the report, the Bureau had cited the NGO Act and raised national security concerns, while banks were told to freeze accounts and police enforced the shutdown.

Watchdog Uganda says the reopening could help restore donor-funded dollar inflows that have historically supported salaries, procurement, services and community programmes. The article argues this may ease pressure on the shilling, improve foreign-currency supply and bring back spending by NGOs, staff and suppliers. It also notes that the sector has been a significant contributor to Uganda’s economy through externally funded grants.

The move is not an automatic return to business for all affected groups; each organisation must still satisfy regulatory requirements. Still, the report presents the decision as a meaningful shift after months of disruption for civil society, employees and communities that depended on NGO operations.

Read the full report at Watchdog Uganda →

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