Sino-Uganda Relations: The Upside Story From a Liberal Perspective

by Admin (Posted on July 11, 2022)

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Overtime, it’s increasingly evident that International Relations can be used for more than preserving world peace through amicable settlement of disputes or stopping international conflicts, but to also foster economic development between global states. Various states are realizing socio-economic development amongst themselves as far as trade, infrastructure is concerned by capitalizing on the favorable relations held with each other.

China and Uganda can be singled out as an example of such states. The two countries have enjoyed good diplomatic relations for close to 60 years with the first diplomatic contact being made by China shortly after Uganda attained Independence in 1962. Since then, this relationship built on mutual respect and cooperation has produced positive developments, the crux of the author’s discussion today.

Generally, while studying the relationship between China and any African country today, one may find it difficult to ignore the effect of the Belt and Road Initiative (BRI) on such a relationship. The aforementioned project was initiated in 2013 to promote infrastructure development among growing nations using funds from China.

Uganda having pre-existent relations with China and having signed an MOU to join BRI, has been one of the beneficiaries of this initiative. A peek into the UNRA national roads project status report for May 2022 indicates that funding from China has been used to complete road projects like the Munyonyo spur, Kampala-Entebbe expressway among others. It also indicates several future projects to be undertaken by secured Chinese funding.

Furthermore, these bilateral relations have realized significant development in Uganda’s energy sector. For instance, the twin Hydro Power Plant projects on river Nile, namely Karuma and Isimba, generating a combined 800MW of electricity were funded and built by funding secured from the Chinese government in addition to local revenue. Electricity is a major factor of production and industrialization, two sectors that can propel developing countries into economic stability. Additionally Chinese companies have undertaken major investments to develop the mining sector in Uganda, an example being the planned establishment of a $200 million gold refinery in Busia district. Such projects and investments increase employment opportunities for Ugandans as well as sourcing revenue for the country in form of taxes.

The continued good relations between China and Uganda have seen the latter nation record developments in its health sector. The earliest notable Chinese health aid to Uganda was through the establishment of the Development Aid for Health from China to Uganda (DAHCU) in the 80’s where Chinese medical teams were sent to the African nation to assist in the country’s ailing health sector. The China-Uganda Friendship Hospital Naguru, a modern health facility built by the Chinese government as a gift to Uganda, is one of the new health projects realized as a result of the good long-standing relations between the two countries. Mahatma Gandhi once opined that health, and not pieces of gold and silver is the real wealth.

Industrialization is argued to be one of the most viable routes toward economic development and transformation and is believed to be the spur behind China’s rise to an economic powerhouse in the last 35 years. Perhaps, in light of that transformation, China’s spirit of good will towards Uganda’s development has driven it to taking center in what one would describe as the African nation’s modern industrial revolution. This is evidenced by the establishment of Industrial parks such as Kapeeka in Central Uganda as well as the Sino-Uganda Mbale Industrial Park in the Eastern region, both funded by Chinese investment groups. Such establishments not only encourage and promote a shift towards a goods production-based economy but also create employment for citizens. With more planned similar parks in Uganda, it is evident that Kampala stands to further benefit more from its good relations with China.

Over 65% of Ugandans, as per a 2017 study by the Uganda National Household Survey, are engaged in agriculture making it the major source of livelihood in Uganda. The relations between China and Uganda have seen the former nation invest to modernize and improve the agricultural sector in the latter to enhance the livelihood of the locals. The Kajjansi Aquaculture Research and Development Centre is a project funded and established with support from the Chinese government as a specialized research center for fish species and modern fish farming methods. Famous for its fresh water lakes, Uganda is a major fish exporter hence such projects improve the country’s export earnings. Additionally, the two countries have significantly promoted trade amongst each other as result of their relations. Although Uganda currently imports more than it exports to China, the significant increase in the volume of exports is a positive indicator of the continuous growth and expansion of the African nation’s economy.

Additionally, the gains of Uganda from relations with China can be noted in the education sector. Annually, China has been offering education opportunities to Ugandans offering higher education scholarships and exchange programs to Ugandan students and hence, boosting the country’s human capital. China has some of the world’s leading institutions in fields like health, engineering and technology hence such an arrangement ensures Uganda’s acquisition of highly trained nationals that can return and contribute to the socio-economic development.

The Sino-Uganda relations have also resulted into developments and transformation of Uganda’s Information Technology sector. In 2006, Uganda secured funding from Exim Bank of China for establishment of the country’s data transmission infrastructure. This included installation of optical fiber cables around the country. As a major techno- innovative country, China has sought to inspire and challenge Ugandan youth to become technological innovators through the Huawei ICT Global Competition. Given the immense role played by technology in development today, Uganda stands to benefit from such an initiative.

In conclusion, the relations between Uganda and China can be described as mostly beneficial to the former as far as socio-economic development is concerned. The existing developmental projects, in addition to future projects have the potential, if well managed to significantly transform and empower Uganda’s economy. Concerns over claims of the socalled national debt burden that may be incurred through loan facilities to develop the country do not necessarily water down the benefits Uganda stands to enjoy if such borrowed money is put to effective use. In sprit of win-win cooperation, terms included in contracts of Chinese loans represent principles of fairness and balances well rights and responsibilities of involved parties. China has on many occasions written off debts of several African countries and renegotiated some where the borrower genuinely fail to pay. Chinese president Xi Jinping, defines the relations between Africa and China as a ‘distinctive path of win-win cooperation’. It is such development partners, keen on upholding values of mutual respect and co-operation that Africa needs.

Marvin H Kalema is a research Fellow with Development Watch Centre, and a law student at University of Johannesburg, South Africa