Ugandans laud China aid, call for better loan terms

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Ugandans laud China aid, call for better loan terms
Ugandans laud China aid, call for better loan terms

BY ELIZABETH KAMURUNGI

Africa-Press – Uganda. A section of Ugandans have commended China for its support to the country’s development, a study into perceptions about Uganda-China relations has revealed.

At least 400 respondents, including politicians, journalists, academics, the civil society, students and business community, participated in the study, whose findings was released yesterday.

Of these, 76 percent said China has had a positive impact on easing access to credit for infrastructural development, which has improved the road network, and provided employment opportunities, scholarships, training and skills development.

Respondents were happy that the aid comes with no interference, and considered it “better compared to those provided by other countries or agencies”

However, only 22 percent were happy with the terms and conditions of the aid and loans China grants to Uganda. This was attributed to high interest rates, while other respondents believe China benefits more than Uganda in the long run.

There were also concerns that the loans could undermine the sovereignty of Uganda. On infrastructural works, the respondents expressed concerns on the “quality of some of the works” calling for improvement on quality of outputs.

The respondents also called on Chinese contractors to hire more local labourers, sub-contract more local companies, respect local casual workers, and put in place strong measures to prevent all forms of abuse during implementation of infrastructural development projects, among others.

Mr Allawi Ssemanda, the Executive Director of Sino Uganda Research Centre (SURC), a think tank dedicated to analysis of Uganda’s foreign policy and diplomacy, said the study was aimed at understanding the role of diplomacy in development and to inform ways for the two nations to improve bilateral ties.

China has in recent years become Uganda’s key development partner, taking on major infrastructure projects such as the Isimba and Karuma Hydro power plants, the Kampala- Entebbe Express Way, Expansion of the Entebbe International Airport. China is also a key player in the development of the nascent oil and gas sector.

Mr Timothy Kerswell of the Chinese University of Hong Kong, Shenzhen attributed some of the negative perceptions to the “penetration of Western ‘Debt Trap’ Narrative”

Benefits

“Factually speaking, China’s loans to other countries make up a small percentage of their total debt, with the majority of debt coming from private lenders, or the International Monetary Fund (IMF)/World Bank” he said.

Speaking at a symposium where the study findings were released, First Deputy Prime Minister and Minister for East African Affairs, Rebecca Kadaga, who represented Vice President Jessica Alupo, also called for an understanding between the two countries on the proliferation of plastic products from China that have outcompeted natural industries.

Ms Kadaga reiterated the NRM government’s commitment to strengthen ties with China.

Mr Peter Muramira, the director of business development at the Uganda Investment Authority, said Uganda aims to increase its exports to China.

Chinese Ambassador to Uganda, Zhang Lizhong applauded the government for creating a favourable investment environment, highlighted tourism and the digital economy as raw areas for collaboration between the two countries.

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