Tag: Development

China excels through simple attitudes

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By Nnanda Kizito Sseruwagi

I recently travelled to Beijing to participate in the 3rd Conference on Dialogue Between Chinese and African Civilizations organized by the China Africa Institute (CAI).

In preparation for the conference, the organizers asked what topic I would prefer to discuss. I chose to contribute to the one on promoting Belt and Road Initiative (BRI) cooperation by sharing development experience between China and Africa. This is because, as a recent graduate, I have reflected deeply on the most significant ways I can contribute to my country and the African continent and resolved that it’s through adding to our capacities for economic development and social transformation.  This conference provided me an opportunity to contribute knowledge and also learn from other experts and scholars on development, especially around the world’s biggest development finance initiative by comrade Xi Jinping- the BRI.

I moderated a panel of knowledgeable persons including Prof. Zhang Zhenke, the Director and Professor of the Center for African Studies at Nanjing University; Prof. Yusufu Ali Zoaka, who teaches Policy Analysis and Development Studies at the University of Abuja in Nigeria; Mr. Wang Yongzhong, the Director and Research Fellow at the International Commodities Division of the Institute of World Economics and Politics (IWES) at the Chinese Academy of Social Sciences (CASS); Prof. Leon-Marie Nkolo Ndjodo of the University of Maroua in Cameroon and Prof. Wang Qilong, the Changjiang Scholar of the Ministry of Education in China and Vice President and Professor at Xi’an International Studies University, among other experts.

After the conference, we flew from Beijing to Fujian Province in South Eastern China. There we drove by road from Fuzhou city to Ningde city, up to Xiaqi village- a boat dwellers settlement which boasts the successes of poverty alleviation in Ningde city.

It was easier on this trip to be overwhelmed by the majesty of infrastructure projects undertaken by the Chinese government, which most first-time travellers from developing countries feel when they visit developed countries. I was also impressed but not by the greatness of the state of China as experienced through such projects, rather by the sheer dedication, discipline and meticulous detail of every Chinese peasant and elite while doing their work.

For thousands of miles across cities and country roads, one sees that every building, every walkway, every street and every tree along the road has been cared for and maintained with religious dedication.

It is easier for the government to oversee imposing projects such as the long bridges across rivers and lakes or the tunnels through mountains to ease road transport. But the hardest thing to achieve is to instill discipline in every citizen to maintain these works.

No government has the reach let alone the grasp to compel a billion people to avoid vandalism, or littering, or to obey traffic rules or clean their homes. In fact, police officers and soldiers were absent from the public. Everyone in these cities enforces discipline by themselves without the vivid coercion and gun-wielding we see in Kampala. I last saw a gun at Entebbe International Airport and the first thing I saw as I disembarked from the plane to access the airport terminal on my return was a submachine gun wielded by a police officer! One wonders how and why a society so obsessed with coercing order as Uganda is, remains so disorganized.

I pondered deeply about order and public hygiene because I realized that it is one of the things a society can have regardless of the functionality of the government. We can blame the government for bad roads, but who shall we blame for failing to make our beds? Or failing to keep away from grass in public spaces? Or failing to dump rubbish in dustbins? Or failing to obey traffic rules?

Many things can make a society function regardless of whether the government has money to provide public goods and services, or whether it is corrupt. These are the things that impressed me most about China. These simple attitudes among its people.

Xiaqi village is one of the most backward places in China. It has peasants who were homeless boat-dwellers thirty years ago. Although one may be impressed by the poverty alleviation undertaken by the government of China in resettling them into decent housing and availing them of social services, I was mostly impressed by their order. Every household has at least two dustbins. The dustbins looked cleaner than they were expected to be. There was not a single piece of litter in their backyards. Not even a cigarette residue. Every flower tree along the roads from this village up to Ningde city looked tendered for with peerless attention. And the roads seemed to be mopped daily. But it’s all because everyone cares not to litter and everyone maintains public facilities in good shape.

No government has the capacity to oversee such dedication and discipline among its citizens to achieve this level of civilization. And citizens needn’t wait for the government of their choice to take personal initiative to tidy up their environment or maintain the few public facilities available. To me, this was the most impressive development in China. And we do not need China’s GDP to attain such social order in Uganda.

nnandakizito@dwcug.org

The author is a senior research fellow, Development Watch Centre.

Uganda needs to Leverage its Bilateral Relations with China to Maintain its Growth Trajectory

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By Musiime George

The past year was a mixture of two emotional hues for Uganda following the enactment of the anti homosexuality law. Whereas proponents of the law celebrated and rejoiced in its enactment, critics and activists alike were concerned that the law would unleash an array of rights concerns in Uganda. However, besides this binary of positions, there was a third group of Ugandans who expressed concerns about the country’s ability to deal with the resulting fallout from the passing of this bill into law. As it would turn out, these fears were justified, as the World Bank Group would later in August 2023 issue a statement announcing plans to halt any further funding to Uganda as additional measures and mechanisms for grievance redress were deemed necessary.  Moreover, in the final quarter of 2023, the Biden administration also announced the removal of Uganda from the Africa Growth Opportunity Act (AGOA) citing gross human rights violations as the reason for the decision to exclude Uganda from the trade pact. While all this was evolving, there was growing concerns about the future of the Ugandan economy and the prospects of attaining the growth targets of Vision 2040 of transforming the country from a peasant to a modern and prosperous economy as the fallout from this law cast a dark shadow over the transformational prospects of the country. This would in turn beg the question; is all hope lost for the country’s economic future?

Nature abhors a vacuum: it is a scientifically accepted position that empty spaces are simply not sustainable and the moment they come about, surrounding matter will always rush in to fill them. We can aptly interpolate this principle of science into the area of international relations and development cooperation just the same way and particularly in the Ugandan case as it seeks to address the fallout from last year’s passing of the Anti homosexuality law.  During a Media and Think tanks briefing focusing on the outcomes and future of China-Uganda practical cooperation on March the 28, the Chinese envoy to Uganda H.E Zhang Lizhong reiterated China’s commitment to work with all countries to steer multi-polarity and globalization. Key to this was emphasizing inclusive globalization, which China defines as supporting countries to pursue a development path that is suited to their own national conditions. This is a notion that fits very well with China’s diplomatic principle of non-interference in the internal affairs of sovereign territories.

It is important to note that the People’s Republic of China (PRC) was among the very first countries to establish diplomatic relations with Uganda only nine days after independence. In fact, bilateral relations between both countries have continued to flourish through the years with milestones including but not limited to, large-scale infrastructure projects such as roads, hydropower stations, and cooperation in health, agriculture et cetera. Additionally, Uganda and China have worked together in a diversity of fields covering poverty reduction, education, science and technology, providing assistance and shared experiences to drive comprehensive social and economic development.

Ambassador Zhang Lizhong further reaffirmed China’s continued commitment to joining hands with Uganda in the spirit of cooperation that delivers on the principles of mutual benefit, common development and inclusive progress for both the people of China and Uganda as both countries advance towards building a community with a shared future. As a testament to this, bilateral trade between China and Uganda has been growing progressively  over the last 10 years from $600 million to $1.3 billion. Moreover, by the end of 2023, Uganda’s share of this had grown by 19.6% reaching $70M. Meanwhile, as the trade ratios might indicate a deficit for Uganda, this is a working progress and China,  guided by its strong belief in a win-win outcome is still dedicated to working with Uganda in addressing this imbalance. For example, this is being done through a number of avenues among which are, a zero tariff treatment for up to 98% of export commodities from Uganda on the Chinese market. China is also collaborating with Uganda to stimulate production through cooperation in areas such as infrastructure through the Belt and Road Initiative  (BRI), industrialization, agriculture, health among others.

In an effort to spur industrialization, China has invested in numerous multi-million dollar industrial parks including the Liaoshen industrial park, Mukono industrial park, Shandong Industrial Park, Kehong China-Uganda Industrial Park and Sino-Uganda industrial park in Mbale, Eastern Uganda. This coupled with additional support such as the donation of rice farming and processing machinery and equipment worth $2 million to Butaleja district, medical supplies worth $1 million to fight malaria, all of which have a cumulative impact on  the nation’s production capacity are not only likely to increase the country’s export volume but also its ability to meet the local demand. Thus in the presence of zero tariff treatment for Ugandan export commodities on the Chinese market, Uganda stands to gain a lot regarding its efforts to narrow down the trade deficit by leveraging this access to the Chinese market aided by the boost to the country’s industrialization effort. Moreover, coming with all this investment is an increase in the number of Ugandans employed hence improved livelihoods and purchasing power of Ugandans as well, all of which will positively impact on the nation’s GDP along the way.

Therefore, I am among those Ugandans inclined to believe that not all hope is actually lost for Uganda especially as the country deals with its removal from AGOA considering that by June 2023, Uganda’s export to the AGOA market was a paltry $8.2 million in contrast with the over $70 million trade volume with China during the same period. This together with all the other efforts aimed at buttressing Uganda’s production capacity, there is more mileage that can be gained only if Uganda is able to effectively leverage its cooperation and bilateral trade  with China by increasing investment in production as well as diversifying and improving the quality of our export products. For as long as we work dedicatedly to bridge this economic gap,  we shall not only be able to just stay afloat but to continue growing our economy as we march towards the targets of vision 2040.

George Musiime is a research fellow at the Sino-Uganda Research Centre.

 

China-Africa cooperation is more than just a silver lining, it is the blue

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By George Musiime

In an interview with CGTN last year, Mr. Wu Peng, director general of the department of African affairs in the Chinese foreign affairs ministry summed up the Chinese government’s view of its interactions with Africa in a single memorable statement in which he noted that “Africa is a big stage for international cooperation, not an arena for major power rivalry.” Such is the spirit that directs Chinese foreign policy towards Africa that is based on the five principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other’s internal affairs, equality and mutual benefit and peaceful co-existence. It is this overriding principle that has not only made China such a significant development partner for Africa over the past few decades, but also why it will continue to play a key role on the continent.

Towards the end of the first half of the last century, Africa witnessed a wave of awakening that swept across the continent in the form of decolonization struggles, yet soon after the attainment of independence, these flames seemed to have fizzled out. Nevertheless, the cooperation between China and Africa still stayed albeit being with a measured scale of involvement. The turning point however came at the turn of the new millennium when, the then President of the Peoples Republic of China Jiang Zemin, announced China’s “going out strategy” in March 2000 followed by the first Forum on China-African Cooperation (FoCAC) Summit. Following these two events, China’s involvement in Africa began to increase and has continuously been on the raise ever since.

The African continent being home to  majority of the world’s developing countries was suffering from a multitude of challenges and bottlenecks that impeded economic progress across the continent  ranging from disease burden, peace and security, infrastructure deficits and food security among many others.  At the same time, the continent was striving to disentangle itself from this array of development bottlenecks. Meanwhile, the developed world mainly viewed Africa as a problem-riddled continent that only required interventions which would come in the form  of development aid. At the same time, China showed up with a very different perception of the continent. Following the announcement of the going out strategy in 2000, china saw Africa as an opportunity other than a problem needing solving. This was followed by more Chinese companies getting involved in Africa. As a result, the continent saw increasing Chinese investment in infrastructure including highways, railways, power generation plants, industry and manufacturing, agriculture and production etcetera. These investments revitalized the continent’s development efforts, setting Africa on a path to modernization-something that had eluded most of the continent since independence.

Confining myself to the Ugandan context, the fruits of Chinese cooperation with Uganda are far reaching spreading across such areas as infrastructure development, peace and security, food security, trade and general improvement of livelihoods of ordinary Ugandans. In fact, government of Uganda has been able to complete several infrastructure projects under the flagship of the Belt and Road Initiative BRI cooperation including the 183MW Isimba dam and 600MW Karuma power plants adding almost 800MW of clean power sources to the nation’s power generation capacity. Furthermore, there has been several completed road projects in partnership with China including but not limited to the Entebbe Express High way, which has significantly eased travel to and from the Entebbe International Airport, also completed are the Hoima-Kyenjojo, Kakumiro Kyenjojo roads. These roads made transportation of both personnel and equipment to the oil rich Albertine region much easier hence facilitating all manner of ongoing development work being carried out in the region. These and similar projects are responsible for pushing the length of paved roads in Uganda up by 1334Km from 4257.00m in 2016/17 financial year to 5591Km in the 2020/21 financial year. However, one other significant development has happened in the agricultural sector under the South-South Cooperation working with the UN’s Food and Agricultural Organization (FAO). The south-south cooperation, aimed at improving agricultural production capacity through the tri-factor of knowledge, skills and technology transfer and building the capacity of local farmers in Uganda. This project went from demonstration farms in 2012 to the establishment of hubs with the primary focus of increasing agricultural production and value addition. The south-south cooperation has been instrumental in increasing production, ensuring food security, creating more jobs along the agricultural value chain and improving the livelihoods of individual farmers in Uganda.

Therefore, China’s cooperation with Africa has been immensely beneficial to the continent in as far as addressing the different development challenges previously faced by the continent. In fact China has been directly involved in projects aimed at not only addressing the national development goals of the host countries but also helping African Countries  in their quest to attain their targets with regards to the UN’s agenda 2030 whether it be poverty eradication or zero hunger, affordable clean energy or climate action, industry, innovation and infrastructure or sustainable cities etcetera. It does not matter whether one is looking at BRI related road or power projects in Uganda, Wind and solar farms in Ethiopia or South Africa, Railway projects in Kenya or Ethiopia, Housing projects in Tanzania or Angola, it is growing increasingly hard to miss the Chinese hallmark on the current trend of economic growth across the continent.

George Musiime is a research fellow at the Development Watch Centre.

georgemusiime@dwcug.org

 

THE AID TO AID US IN DOING AWAY WITH AID

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By Salim Abila Asuman

The nation breathes in a symphony of fiscal toxins, with each exhale dealing a crushing blow to its fragile economy. Loans of all kinds now sit on its people’s shoulders, tasked with bearing the weight of unjustified financial obligations.

National debts, the financial chains binding governments come in various haunting forms and they are the following;

Internal Debts: This is a specter lurking within borders, internal debts arises when a government borrows from its citizens or domestic institutions. This debt, though seemingly closer to home, can still cast a long and dark shadow on the economy.

External Debt: This one is a phantom from beyond borders, external debt materializes when a nation borrows from foreign entities or international institutions. The chains of external debt can tighten as global economic tides shift, rendering nations vulnerable to external forces.

Unfunded Liabilities: These are a silent menace, unfunded liabilities represent promises made by governments for future payments, such as pensions and social security. As these promises accumulate, they form an invisible debt, haunting fiscal planners with the fear of impending obligations.

Contingent Liabilities:  Is a lurking uncertainty, contingent liabilities emerge from potential future events that may lead to financial obligations for the government. These debts, like ghost in the shadows may materialize unexpectedly, casting doubt on the nation’s financial stability.

The authority to negotiate any of the aforementioned loans is laid at the door of the government, and with it handicapped, the pendulum swings in favor of corporate lenders. The truth is plainly that governments come and go, leaving the people to bear the burden of irresponsible state actions, and this weave needlepoints of emotions that touch the very soul of an originally Ugandan that bears the burden of repaying his nations debts.

The multifaceted consequences of national debt on a nation’s economy are also explored here, this is done through investigating the intricate interplay of economic indicators, government policies, and global financial dynamics.

On interests and budget allocation, high national debt can lead to increased interest payments, limiting funds available for other budgetary priorities like infrastructure, education, and healthcare.

The crowding-out effect, is also as a result of increased government borrowing, it reduces private sector investment and borrowing, thus hindering economic growth by increasing loan costs.

Additionally, the competition for funds in the credit market can limit the resources available for private enterprises, contributing to a crowding-out effect.

High national debt also limits fiscal flexibility, and as a result limiting the government’s ability to respond to economic challenges, allocate discretionary spending, and to invest in long-term economic development.

Amidst all the above there is aid to aid us in doing away with aid; this is the concessional loans from China. Unlike commercial loans, concessional loans come with more favorable terms.

These financial aids are often extended by governments or international institutions, featuring lower interest rates, extended repayment periods, and greater flexibility. And the intention is to support the economic development of recipient nations without burdening them with stringent conditions associated with commercial borrowing.

China’s involvement in Africa particularly through concessional loans, has played a pivotal role in financing various infrastructure projects and initiatives across the African continent.

The terms of concessional loans from China are designed to be more favorable than of commercial loans, and these terms include lower interest rates, longer repayment periods, and increased flexibility.

This nature of this loan is meant to alleviate financial burdens on African nations, allowing them to focus on development without the immediate strain of high-interest payments.

In recent years, Uganda has benefited from Chinese concessional loans, to boost infrastructural development, showcasing the practical benefits of collaboration between the two nations. Here are a few examples:

Expansion of Entebbe International Airport: China Exim Bank’s concessional loans have significantly improved Uganda’s Entebbe International Airport, increasing capacity, updating facilities, and operational efficiency, thereby enhancing the country’s international stature and global connectivity.

Karuma Hydropower Project: China’s financial support significantly contributed to Uganda’s Karuma Hydropower Project, a 600-megawatt hydroelectric plant on the Nile River, promoting sustainable electricity generation and a more energy-secure future.

The Isimba Hydropower Project, funded by Chinese concessions, significantly boosts Uganda’s electricity generation capacity, providing reliable power to urban and rural areas and boosting economic activity.

The Kampala-Entebbe Expressway: Funded by China, it has significantly improved Uganda’s transportation infrastructure, alleviating traffic congestion and boosting economic activity by facilitating quick access between Kampala and Entebbe International Airport.

The Source of the Nile Bridge is another Chinese concessional loan-supported structure in Jinja, that has significantly improved regional connectivity, boosted trade and tourism, and showcased Uganda’s commitment to sustainable development.

In the complex landscape of interstate relationship, concessional loans also play an important role in strengthening interstate partnerships, establishing them as a potent tool for boosting collaboration and mutual development.

Concessional loans stimulate economic growth in recipient countries by providing financial assistance on advantageous terms to infrastructure projects, industries, and other critical sectors.

This economic boost benefits not just the recipient state, but also has a knock-on effect, encouraging regional stability and collaboration.

Negotiating and implementing concessional loans often involve mutual development goals, this motivates governments to work on long-term projects, nurturing unity and purpose, and forming links beyond economic transactions.

Infrastructure projects backed by concessional loans create job possibilities, the interchange of talents and expertise during project implementation strengthens inter-state relationships.

Loans at concessions include flexible terms that reduce financial risks and promote shared achievement to the receiving state, that in return foster confidence and collaboration which are crucial for interstate ties development.

Diplomatic cooperation is crucial for concessional loan negotiation and management, fostering discourse, compromise, and problem-solving, laying the groundwork for future diplomatic partnerships and communication channels.

Most important concessional loans are a potential antidote to corruption in nations plagued by notoriety for malfeasance. This financial instrument is accompanied by stringent conditions and transparency mandates, it brings with it a web of oversight mechanisms, audits, and accountability measures.

This heightened scrutiny creates a transparent landscape, significantly reducing the loopholes and opportunities for corruption.

These loans are inherently tied to development projects and public welfare initiatives, this strategic alignment ensures that the funds injected into the nation are directed towards projects with a tangible societal impact.

By prioritizing the common good, concessional loans minimize the risk of funds being drawn off for personal gain, nurturing a culture of responsible financial management and accountability.

In essence, these loans become not just a financial lifeline but a catalyst for transformative change, challenging the entrenched patterns of corruption that have plagued this nation for far too long.

In the inhale of an assortment of financially crippling poisons, this nation has absorbed every toxic offering, each delivering a devastating blow to the fragile economy. This relentless assault has heaped an undue burden upon the shoulders of its citizens, compelling them to bear the weight of unnecessary financial obligations. Amidst this dreadful set-up, the beacon of hope flickers in the form of concessional loans—the only aid capable of assisting us in breaking free from the chains of perpetual financial strain.

The author is a junior research fellow at the Sino-Uganda Research Centre.

 

 

Strategies for Uganda to Harness China’s Development Finance

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By Nnanda Kizito Sseruwagi

On 8th August 2023, David Theis-the Press Secretary and Spokesperson of the World Bank Group- released a statement about Uganda in the wake of our Parliament’s passing of the Anti-Homosexuality Act, noting that “no new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested…” This statement effectively meant that the World Bank had suspended further funding to Uganda although priorly funded projects weren’t to be affected.

This is the trouble with Uganda’s reliance on development finance especially from the West. Instead of respecting the sovereignty of Uganda and allowing us to build the critical internal political forces to challenge these bigoted laws ourselves, they emasculate us with these superficial interventions. We cannot perpetually rely on external sources of financial support if we are to build a stable, independent state. We must build capacity to stand by ourselves, which invites us to strategize on the best possible ways to harness development finance.

The 2023 incident was not the first time Uganda was starkly reminded about the dangers of relying on foreign financial support. Similar economic constraints and disruptions happened in 2009, 2012, and 2014 when Western funders cut the taps under similar circumstances, crippling our fiscal operations.

However, over the years, China has become a valuable alternative to the West’s development financing and its attendant conditionalities. We should not take this partnership for granted. We must utilize their financial support optimally to arrest chronic dependence.

Why China?

Due to the shortage of development funds, donors often prefer countries with established mechanisms that increase the accountability and effectiveness of development finance. Whereas this is well-meaning, Western donors often unnecessarily intervene in internal affairs of countries which affects the long-term reliability required for development finance to be utilized effectively. Additionally, research shows that this funding is also highly dependent on the strategic objectives of the donor. China’s strategic objectives as articulated in several official statements including the “China Africa Policy” are keen on respecting our chosen development paths and mutuality.

To maximize the benefits of China’s development finance to Uganda, we must have clear national development goals and strictly implement them. President Museveni has reiterated severally that his government’s historical mission is the socio-economic transformation of Uganda. I find this a very appealing goal for any developing country to pursue. But how can we do this?

Firstly, we need to sustain Gross Domestic Product (GDP) growth for a long time. The NRM government has commendably achieved this with a 6.92% growth average sustained between 1986 to 2015 (33 years).

Secondly, two key elements must also be realized to achieve Uganda’s socio-economic transformation. We must transition from an agrarian economy to a manufacturing hub in order to transform our people from hand-to-mouth peasants to working-class citizens who participate in the nation’s financial environment. To do this, we need the availability of long-term cheap credit to support industrialization and indigenous ownership of the most productive sectors of our economy. This is where China comes in.

China’s development finance to Uganda comes in multiple forms such as concessional loans, grants, and investments in infrastructure projects. Sometimes, the interest rates on their concessional loans are below the market rate, which makes them attractive as a source of cheap credit. The Belt and Road Initiative (BRI)- China’s project where this development finance comes from- is also a long-term initiative, which meets the time scale requirement.

We should further focus on local workforce development through skills and technology transfer from our Chinese partners to local populations. As a global technological powerhouse, China possesses advanced technologies in various sectors which we should borrow. This can be done by ensuring that Ugandans collaborate with Chinese technocrats on managerial and maintenance areas of implemented projects. China has many big infrastructural projects in Uganda including roads, power plants, mines, industries, etc. These are strategic areas for us to acquire skills and build capacity among locals to take on such projects by ourselves in future. Chinese expertise should provide us with invaluable training opportunities for our engineers and laborers but should never create chronic dependence.

It is not a given that pumping development finance into our economy will lead to structural transformation. It is easy to lose these investments if we do not maintain our selected purposes for utilizing these funds. Therefore, we must adopt strategic approaches systematically from careful project selection, transparent negotiation and local workforce development. We must always remember that the end goal in all this is to be independent from this assistance. With a thoughtful and well-executed strategy, we can harness China’s development finance to propel ourselves into a more prosperous and sustainable future.

The writer is a Lawyer and Research Fellow at the Development Watch Centre.

SQUEEZE OR SYMBIOSIS? WEST’S BAD BET ON CHINA-AFRICA RELATIONS

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During my high school years, music wasn’t just an entertainment to me ,it was the air I breathed, I had a taste for different music genres but more remarkably, I held Bob Marley’s Reggae  and Pharrell William’s RnB so dearly.

Bob and Pharell’s hits were not just a mere sound to me but a gateway to my discovery and a  map to the world, one of the music lyrics that got ingrained in my mind were from Pharrell Williams an American award-winning singer,  songwriter, and producer with his hit song titled” get lucky.”

It appears to me China and Africa are dancing to my favorite song’s rhythm  “Get Lucky” given their current state relations commonly referred to as “win-win relations”.

In his “Get Lucky” song Pharrell sings “We have come so far, to give up who we are so let’s raise the bar and our cups to the sky”.

Indeed China and Africa have come so far to give up their relations and like the song lyrics further go, I feel like this is the time for the two of them to raise their bar and cups to the skies given their significant achievements through the reciprocated relations they have had.

The two civilizations ( China and Africa)  have a long-standing history that cannot be easily undermined despite the attempts by external forces.  contrary to what many assume that China and Africa relations date only a few decades ago, there is supporting evidence that suggests contact between the two dates back to 202 BC to 220AD Han dynasty.

During the Han dynasty, this was the period when trade flourished between China and Africa along the Silk Road through the exchange of Chinese ceramics, textiles, and spices among others with Africa offering ivory, rhinoceros horn, and precious metals. This trade continued to flourish even in the era when China got caught up in its internal conflicts whereas  Africa was limited by its internal political landscape.

Despite this upheaval, the interaction between the two civilizations was being conducted indirectly through Arabs and Indians that mostly resided at the coastal towns of East Africa.

In the 20th century as President Museveni often reminds the “the Bazzukulu” the acronym for the young generation, China actively supported Africa’s struggle for independence strengthening their ties against Western imperialism which explains their inherent unity against Western imperialists.

This also signifies that the relations between the two are highly solidified and hard to undermine, this can be observed r through the mutual support China and Africa have ascribed to each other, especially on a global stage such as the UN.

It should be noted that Chinese ascendancy to the UN was due to Africa’s backup and the two have cooperated on peacekeeping missions and initiatives aimed at promoting stability and security on the continent.

One of the arguments fronted by the Western scholars which I consider unfounded is that China is self-centered and inconsiderate citing that China wins all major contracts in Africa Outcompeting African domestic engineering firms. In  my counterargument I always remind them that “ as the West is sending troops in Africa, China is sending engineers”.

Among the major reasons Chinese engineering firms are awarded contracts in Africa is due to China’s long history of civilization and the top-notch expert evidenced in building long-lasting infrastructure such as the Great Wall of China built from 3rd BC to 17th century AD, Canton Tower 604 m tall multipurpose tower in Guangzhou province, Macau bridge among others.

On the other hand, Africa has a vast infrastructure deficit requiring extensive construction Chinese companies come in to fill the gap with low-cost alternatives to European companies and higher quality work than most African-owned companies.

While speaking at the Sino-Uganda cooperation symposium themed “The Harmony of Civilization and Responsibilities for a Better World”,  Timothy Kersewell a professor at the Chinese University of Hong Kong Shenzhen referred to the recent sanctions by the Biden administration on Uganda as abnormal further questioning the western regard of what  constitute a sovereign state.

Much as I sympathise with every marginalised individual or group in whichever part of the world he or she inhabits, I also strongly agree with Professor Timothy as it has always left me with so many questions answered on the procedures and mechanisms the US follows when it decides to play the sanction card.

Theoretically, the West regards itself as a custodian of international law yet these unlawful sanctions undermine its credibility in that regard.

International law upholds the principle of sovereignty without any classification of teacher-student kind of relationship which hegemonic countries want to impose when they interfere in other sovereign country’s internal affairs.

Over time US has been using sanctions as a tool of punishment with whoever violates their ideals although the effectiveness of the sanctions towards achieving their intended goals can be debated.

Steven Akabwayi is a Research fellow at Sino-Uganda research centre.

Navigating the Trade Imbalance: Increased Cooperation with China Benefits Uganda and Africa

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By Shemei Ndawula

Recently, the European Union(EU) Parliament issued a formal complaint against the Chinese People’s Republic regarding its trade deficit with China. This complaint has sparked global debate about the nature and impact of China’s economic engagement with the world especially with  developing nations. While the EU’s concerns are not without merit, in the new multipolar world, the continental body seems to often fallen short of the economic flexibility that previously made it an economic powerhouse.

In this Uganda presents a contrasting perspective; a nation often lauded as the most entrepreneurial in the world,  the potential of China’s unique approach to development in bridging Africa’s infrastructure gap and fostering inclusive economic growth could be the defining factor for our nation’s economic prosperity for the coming decades.

Trade Deficit: A Stepping Stone, Not a Stumbling Block

Uganda’s trade deficit with China is undeniable, with imports significantly exceeding exports. However, unlike the European Union, Uganda’s situation presents a unique opportunity where we can leverage China’s infrastructure development focus to accelerate our  own economic progress.

The Eurocentric model of development aid, often plagued by bureaucratic hurdles and limited tangible outcomes has proven largely ineffective in addressing Africa’s critical needs. In contrast, China’s investment in infrastructure projects like the Kampala-Entebbe Expressway and the Karuma Hydropower Plant directly improve Uganda’s transportation network, energy security, and overall economic activity. These investments create skilled jobs, stimulate local businesses, and lay the foundation for long-term economic growth.

To maximize the benefits of our relationship with China while minimizing the trade deficit, Uganda should adopt a multi-pronged approach by making strategic investments especially in these key areas;

We should further explore our economic diversification by moving beyond the current dependence on exporting raw agricultural commodities and minerals. This can involve processing agricultural goods locally, focusing on value-added products, and exploring latent potential in sectors like tourism in which we are abundantly gifted. With China’s success at poverty alleviation, it provides a potential tourism market of more than a billion people.

Additionally, we should comprehensively develop our national industrial capacity. China owes it’s rise to prowess in manufacturing and industrial development. This prowess through technology sharing can be leveraged to build Uganda’s own industrial capacity.Attracting Chinese companies to establish production facilities in Uganda can also create jobs, facilitate knowledge transfer,and reduce reliance on imported goods.

We will also need to strengthen trade facilitation which is the backbone of bilateral trade.The custom procedural process in the country needs to be streamlined with our foreign embassies and ambassadors. There’s hundreds of Ugandan importers in China facilitating the export of tons of Chinese made goods to the continent every day. The reason this is not two way traffic is because of the bureaucratic and expensive export process within the country. We will certainly need to streamline the export process if we ever hope for our goods to reach the Chinese markets.

The win-win approach which defines China’s foreign policy methods has already seen several Chinese companies setup shop in Uganda an outstanding example being the Chinese industrial hubs in Kapeeka and Mbale catalysing joint ventures between Ugandan and Chinese businesses can unlock new opportunities for both sides. Sharing expertise, resources, and market access would lead to innovative products, improved services, and increased trade flows.

A Balanced Approach: The Key to Success 

While Uganda and other African nations must capitalize on the benefits of their relationships with China, adopting a balanced approach is crucial. Diversifying partnerships beyond China, ensuring fair and transparent trade practices, and promoting responsible investment are essential to safeguarding Africa’s long-term economic interests.

The debate surrounding China’s economic engagement with developing nations is complex and multifaceted. While concerns about trade imbalances tend to look at the traditional indicators imports and exports, Uganda’s experience demonstrates the potential of China’s unique approach to development. By strategically leveraging this partnership, Uganda and other African countries can accelerate their economic growth, bridge their infrastructure gap, and create a more prosperous future for their citizens. Ultimately, the key to success lies in a balanced approach that acknowledges both the benefits and challenges of China’s economic presence while ensuring that Africa’s long-term economic interests are protected and advanced.

Shemei Ndawula is a Research Fellow at the Development Watch Centre.

 

Uganda-China Relations: Partnership of Equals and Win-Win Cooperation

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By Ndunaka Godswill Chikamso

Like many other countries, Uganda has been seeking foreign investment and partnerships to drive economic development and the country has made significant strides towards economic development in recent years, thanks to the support of various international partners. One such partnership that has been growing in significance is China-Uganda Relations.

China and Uganda have a longstanding relationship dating back to the early 1960s when Uganda gained independence. The relationship has been characterized by cooperation in various areas, including trade, infrastructure development, and education. Over the years, China has provided significant assistance to Uganda in the form of aid, loans, and investments opportunities. In 2018, China was Uganda’s largest trading partner, with bilateral trade worth over $1.2 billion. Since then, Beijing remains one of Uganda’s leading trade partners and major source of foreign direct investments (FDI).

With China introducing zero tariff to Ugandan goods which will see Ninety-eight percent of Ugandan goods accessing Chinese market tariff free, trade between the two countries is expected to grow further. Last year, Chinese Ambassador to Uganda, Zhang Lizhong announced the Special Preferential Tariff Treatment of Ugandan Exports to China, explaining that this was in line with commitments made by China at the Eighth Ministerial Conference of the Forum on China Africa Cooperation (FOCAC) held in Senegal last year.

Even before the said Special Preferential Tariff Treatment, China has been investing heavily in Uganda, particularly in infrastructure development projects such as roads, bridges, and power plants. The most notable project is the 51 kilometers Kampala-Entebbe Expressway, which was constructed with a loan from China’s Exim Bank and has greatly improved the country’s transportation sector. Additionally, China has financed the construction of the Karuma and Isimba hydroelectric power plants, which will increase Uganda’s energy capacity and reduce its dependence on fossil fuels. The entry of Chinese construction firms into Ugandan market is always cited as the reason for reducing billing prices for road construction in Uganda. Indeed, at the time when European companies were dominating road construction business, the construction of one kilometer took about 3.1 billion shillings compared to current rate of about 2.1 billion shillings per kilometer.

China has also invested in Uganda’s telecommunications sector, with Chinese companies such as Huawei and ZTE playing a significant role in the country’s development of 4G networks and fibre optic cables. This has greatly improved internet connectivity in Uganda and provided opportunities for innovation and entrepreneurship.

Another sector that China has played a significant role in Uganda’s economic development is supporting the country’s infrastructure especially road and energy sectors which has in turn helped easing transportation of goods and services and also helped in addressing unemployment challenge. In 2014, while closing a two-day Pan African Youth Conference at Serena International Hotel Conference in Kigali Rwanda, President Yoweri Museveni explained that “infrastructure development such as Roads, Electricity and Railway in any country is of importance as it attracts investments and creates jobs for the youths.”

In 2017, while on a visit to Uganda, Christine Lagarde, then Managing Director of the International Monetary Fund (IMF) credited Uganda for what she described as “Uganda has appropriately embarked on a strategy of scaled-up infrastructure investment in the energy and transport sectors to relieve key growth bottlenecks and enhance regional linkages.” Lagarde argued that “focusing on overcoming implementation challenges, including through strengthening public investment management, should help ensure that these investments yield the desired outcomes in terms of higher growth and job creation.”  If critically analysed, the improvement and development of Uganda’s energy and infrastructure sector became possible largely because of China’s assistance.

Today, Africa’s biggest challenge, especially Sub-Saharan region, is poor and aging infrastructure.  A 2022 study by McKinsey and Company concluded that unless addressed, infrastructure deficits in key sectors such as roads and energy will continue to hinder African countries’ economic growth and development especially in Sub-Saharan Africa. The study concluded that while the region is faced with high demand of infrastructure development, there are few partners or investors willing to provided huge amounts needed for such projects. Therefore, China’s readiness to back such projects in Uganda and Africa in general cannot be underestimated.

However, while China’s hand in supporting African countries infrastructure is a big boost, Uganda and other African countries must should only borrow and invest in projects that can easily spur economic development as a way of ensuring easy servicing of loan facilities extended while undertaking such infrastructure projects so that issues such as rising debts critics often point at are avoided.

That said, there are multitudes of opportunities that comes with steady and good relations between China and African countries. The other area with huge potential for cooperation is in the field of agriculture. While China is already working with Uganda in this area especially through FAO-China South-South Cooperation (SSC) in which China has since 2015 been supporting agriculture initiatives in Uganda, if projects under SSC especially its phase III are spread throughout the country, more fruits will be realized in a short period. SSC has potential to spark Uganda’s economic development especially if they work together with Uganda government’s introduced Parish Development Model (PDM).  Uganda is an agricultural country, and there is a need to enhance agricultural productivity and value addition. With her rich experience in modern agriculture, China can provide technical support, expertise, and investment towards Uganda’s agricultural sector.

In conclusion, China has played a significant role in Uganda’s economic development, providing funding and investment for critical infrastructure projects. China’s engagement with Uganda has brought many benefits, including employment opportunities, enhanced energy capacity, and improved connectivity. While this has brought several benefits to the country, including job creation and economic diversification, there are also concerns about debt sustainability, environmental impact, and the impact on local industries and businesses. As Uganda continues to seek foreign investment and partnerships, it will be important to carefully consider the benefits and drawbacks of these relationships and ensure that they are sustainable and equitable.

Ndunaka Godswill Chikamso is a junior research fellow at Sino-Uganda Research Centre and a Medical student Niger Delta University, Nigeria.

China-Uganda Relations: As it Was During Colonial Rule, China Remains a Reliable Development Partner!

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By Musanjufu Benjamin Kavubu

China and many African countries have shared a history regarding the sense of imperialism and colonialism. China was not so long ago under the colonial rule of Japan and some of its territories like Hong Kong under Britain. China’s Communist Party set an example and also went ahead to support African independence struggles. Even with its rich history, China can be credited with the front of economic growth that has a basis on the political will of CPC and its leaders from the days of Chairman Mao to to-date where CPC Secretary General and President of China Xi Jinping advocates for building a community with shared prosperity for mankind.

Like every global player for China Africa is part of its economic playground and places like Uganda are both its geopolitical and geo-economic outposts. One may then wonder if Uganda is just a pony on a grander chessboard. It depends on how you watch events and the perceived results. What makes news is Beijing’s economic strategy and it’s in a few cases in the past decades save for its ambitions unify its claimed territory of Taiwan when China’s military strategy has come under the world’s microscope. Even with the military bases in the South China Sea and some off the African coast, the answer is supply chain interests that facilitate its trade with the world. Put differently, China has never been a coloniser and to date, if critically analysed, Beijing bears no such ambitions but rather win-win cooperation where countries world over benefit from a win-win cooperation under world order where each country’s sovereignty is respected!

Unlike the British Empire that is only visible today through a shadow of Common Wealth nations that kicked off with military expeditions and remained in place with the power of the gun and the United States hegemony that has a thirst for energy resources also backed with senseless wars, China has had this supposed strong foothold on the world and places like Uganda with no boots on the ground in terms of soldiers or even private contractors. China chooses economic diplomacy and it has run lately on projects like the famous Belt and Road Initiative (BRI) and Maltiplarism through BRICS a block made up of Brazil, Russia, India China and South Africa which unlike the G7, BRICS advocates for equality of all countries as well as respect for all irrespective of their size or military might.

Nothing has brought criticism to Beijing like the true intentions of the Belt and Road Initiative a project that has seen China seriously considering and supporting developing countries’ infrastructure development loans to among others construct, sea ports, airports, rail line networks and roads from Africa to Americas, from Asia to Europe all aimed to facilitating trade. This development has arguably revolutionized developing countries’ infrastructure development which organisations like world bank have continuously said they receive very low funding despite being key in social-economic development aspect.

Sadly, some people claim BRI is about China taking out raw materials and bringing back low-quality products through its massive web of the supply chain, with other critics of China especially from the West who often cherry-pick and ignore reality and brand China’s generous infrastructure development assistance as “debt trap.”

 

For a moment picture this China through EXIM bank provides a loan to Uganda to construct a hydropower dam on the Nile River, in the process technology is imported and at the end of it, all rural electrification is achieved which will facilitate industrialisation leading to employment, in turn creating a population with disposable income that is used to develop microeconomics of households that bring further education and research in the academia field. It’s from such initiatives that a real middle class is a bred that will in the end consume quality Chinese products because of the disposable income. The question is who wins? A real middle class that pays taxes will in the long run offset the loan for the dam, a real middle class will trade and create a functional society. A functional society has no appetite for civil war or trade in arms and that will ensure civility and a level of peacetime. That sounds like true economic development!

In the past two decades, Ugandans that speak Mandarin have increased and it’s not because it’s part of the school syllabus even if they are few language schools in Kampala that offer to teach it. The main reason for Mandarin in Africa is the increased scholarships that Beijing is offering. There is a likelihood that every Uganda knows someone close who has travelled to China for education on a fully Chinese government funded scholarship. When these people return after studying, they have contributed to the local academia and thus bettering the educational sector that is very fundamental in economic development. Whatever China’s foreign agenda policy is behind shipping Ugandans to China educating them and sending them back it’s to our society’s advantage in the long run.

China has a thirst and also a shortage for oil in its massive industrialization scheme and on that note, it’s watched carefully through its activities on the energy market. CNOC is one of the partners of Uganda in the oil sector and the company’s efforts can’t be downplayed in the facilitation of black gold’s take-off in the country. It’s a writing on the wall that if the oil sector is handled well by the state and its full potential is realised, then it will overturn the economic prospects of the nation. Today, many Ugandans in Albertine region have already seen fruits from oil sector especially through CNOC’s cooperate social responsibility where social services for communities are looked at as well as employment opportunities! The other most striking example are modern houses CNOC constructed for people affected by oil project in Kingfisher oil field.

Uganda like most African countries will seem like small pieces in China’s economic strategy but the reality these tiny pieces are useful and all need to work. China at some point will even go beyond its comfort zone to ensure these pieces function as expected beyond United Nations Security Council speeches where it’s a permanent member. It is important that the war in Ukraine and the new world order on the horizon led by players like China Kampala maintain a strong relationship with Beijing to realise further economic development.

While China’s critics and Sino-Africa skepticists especially in the West claim that China’s engagement with African countries is guided by what they claim to be Beijing’s “selfish interests” at times with absurd claims that most African countries have received fewer tangible benefits from China relations the reality is that where greatly or otherwise, tangible or otherwise, China-Africa relations are working and wonders are being created! The fact that China respects African countries sovereignty and that these relations are based on equality not the West’s assumed big brother role, African countries should jealously guard these relations! As African countries demand for equality and permanent representation at the UN security Council, it is clear that China at some point will ensure this dream becomes a reality by supporting Africans as they did while Africans fought against brutal colonial rulers.

Musanjufu Benjamin Kavubu is a Junior Research Fellow at Sino-Uganda Research Centre.

 

From Mityana to Guangzhou; The incredible story of Mr. Mugerwa

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By Shemei Ndawula

Mugerwa Joseph is a natural born story teller, perched on his wooden stool, his hand nestled absentmindedly in his prickly black beard stubble, one would be forgiven if they wouldn’t believe he’s one of the most influential personalities in Uganda’s flower industry, running two successful flower shops and wholesale flower depots as well as an accomplished events planner.

But once you hear him speak, you catch a glimpse of a savvy business man whose vision and ambition led him, with little formal education and financial grounding from the dusty backroads in rural Mityana, Uganda to what he describes as “the world’s largest floristry market” in Guangzhou, China.

His colleagues jokingly refer to him as a Ugandan-Chinese because his TV set in the florist is always tuned into Chinese news station CGTN and he’s always quick to offer insight on the news stories relying heavily on his experiences in China, he often has a rapt audience listening to his stories as he extrapolates, in a deep sagely voice, his Chinese experience.

When I first met him, he was emphatically detailing the meals he used to have while on the Asian continent, he was saying (the following words are translated and paraphrased from Luganda which is his main language of communication) “as a Ugandan in China, the easiest meal to get is chicken, we ate so much chicken we almost got tired of it, I see you people excited by these restaurants like KFC but in China, these are very normal things, in fact, we would have to take a train from our area in Guangzhou to go have Ugandan food like Matooke” he exclaimed to  his enrapt audience.

Mr Mugerwa’s first trip to China was a decade ago. This was after close to eight years working as an apprentice florist in Kampala for one of the earliest commercial flower companies in the country and deciding he wanted more.

During his early days in Guangzhou, Mr Mugerwa was fascinated by the technological and artistic innovations he came across. He marveled at the efficient and fast transportation systems, the modern buildings, and the use of digital technology in almost everything and most importantly the advanced manufacturing capabilities of the Chinese synthetic flower industries which could make high quality artificial flowers with the appearance and texture of natural flowers.

Inspired by this, he would take long walks around Guangzou flower market in the evenings trying to learn and soak in everything he could about the industry, which would later prove to be a game-changer for his florist business in Kampala.

He was mind blown by the abundance of affordable high-quality flower accessories that he’d possibly never have imagined while in Uganda. This sparked a new idea in him. He was quick to establish contacts in Guangzou despite the language barrier (he is still predominantly a Luganda speaker) and because of the amazing business acumen that has come to define the Chinese bilateral trade, he had access to many high-quality goods at heavily discounted prices many of the sellers even offering the enthusiastic fast talking Ugandan businessman credit facilities.

Using his contacts in Guangzhou, he imported his first shipment; a great haul with floral wrappers, ornamental vases, decorative linens and realistic artificial flowers many of which were novel to the country which sparked a revolutionary ripple in the local Ugandan floristry industry.

With his new-found business knowledge and a steady supply of affordable high-quality flower accessories, Mr Mugerwa’s florist business in Kampala has been on the up and up since his first trip to China. Because of the great bilateral friendship between Uganda and China, Mr Mugerwa is able to import high quality goods from factories in China at low costs and resale them at affordable prices in Kampala, a win-win partnership with his Chinese suppliers which has turned the ambitious Mityana youth into an astute businessman expanding his first florist with a second flower shop which deals exclusively in events management and decoration as well as a second wholesale flower depot. Additionally, the floristry ideas and techniques he picked up from China have also made him one of the best creative florists in Kampala and doubtless an unassailable force in the industry.

The story of Mr Mugerwa is no strange outlier. Countless Ugandan lives have been positively impacted by the great Sino-Ugandan partnership over the last six decades. From business men like Mr Ntumwa Birimumaso of Ubuntu Cafe, to scientists like Engineer Rita Nasaazi a petroleum expert, and agricultural and bamboo enthusiast Mr Andrew Ndawula Kalema of Talent orchards.

Often when we discuss diplomacy, bilateral trade and foreign policy, it is easy to get lost in the statistics and figures as well as heavy sounding diplomatic diction that we may at times forget the faces behind the statistics and the voices behind the economic trends. Every unique story like Mr Mugerwa’s is a vote of confidence in the special bilateral friendship that Uganda and China share and a promise of what we can achieve by working together, the promise of the CCP leadership in China and the people of Uganda, a friendship of mutual benefit, cooperation and development that’s echoed in the China’s infrastructure support in Africa especially under the Belt and Road Initiative  and the established preferential trade agreement between China and African countries.

It is said that one of the greatest achievements of the ancient Chinese was to build The Great Wall of China; I believe, in retrospect, the future may perceive the greatest achievement of modern-day China as The Great Bridge of China; the great bilateral friendship that connects so many countries to the People’s Republic of China bridging the gap between dreamers and opportunity, a win-win partnership.

Shemei Ndawula is a senior Research Fellow, Sino-Uganda Research Centre

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