Tag: Development

China’s Contribution Towards Uganda’s Socio-Economic Development: The Tale of an Ordinary Ugandan

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By Salim Abila Asuman

In the dynamic arena of discourse and debate, where narratives clash and ideologies collide, one principle stands as a beacon of clarity: the irrefutable power of facts, where empirical evidence and data stand as towering pillars, guiding us through the fog of uncertainty towards the beacon of truth.

As I embark on this journey to demystify two broadly told misconceptions about Africa-China relationship, I delve into a riveting account where facts have triumphed over conjectures and falsehoods.

However, first and foremost, at the heart of this article lies the undeniable facts surrounding China’s contributions to Africa’s development, a narrative marked by infrastructure investments, trade dynamics, and technological exchanges.

In unlocking Africa’s potential, China’s impact on its development including Uganda can be summarised by three key power facts;

First; One of the most visible aspects of China’s involvement in Africa is its extensive investment in infrastructure projects. From highways to railways, ports to telecommunications networks, Chinese funds and expertise have transformed the continent’s physical connectivity. These developments not only facilitate intercontinental trade and commerce but also lay the groundwork for sustained economic growth and regional integration.

Second; China has emerged as Africa’s largest trading partner, with bilateral trade volumes soaring to unprecedented heights. Chinese investments, spanning diverse sectors such as manufacturing, mining, and agriculture, have injected vitality into African economies, creating jobs and driving industrialisation.

Third; Beyond bricks and mortar, China’s engagement with Africa extends to knowledge sharing and capacity building initiatives. Through technology transfer programs and educational exchanges, China has played a pivotal role in enhancing Africa’s human capital and fostering technological innovation. Whether in renewable energy projects, information technology hubs, or agricultural modernisation efforts, these partnerships hold the promise of unlocking Africa’s full potential.

In the epic battle between truth and deception, these facts emerge as the fearless cavalry charging through the darkness, their blazing light cutting through the fog of falsehood and misconception, and unveiling the unvarnished truth in a dazzling display of unwavering resolve.

In the face of the three (3) aforementioned facts, the misconception and falsehood that China’s engagement in Africa including Uganda is solely exploitative hides its self because it blatantly disregards the various infrastructure projects and investments that have benefited African economies. Because obviously, all those infrastructure projects and investments cannot just be for a show, and not actually benefiting Uganda and Africa at large.

Additionally, there’s another misconception that China’s presence undermines democracy and human rights in Africa, this overlooks the diverse relationships African nations have with China and the agency these nations exercise in their partnerships.

It is important to consider the nuances and realities of China’s involvement in Africa rather than subscribing to oversimplified narratives of domination.

In the intricate web of progress and development, the true measure often lies in the eyes of those most intimately woven into the fabric of society, its citizens.

Among them, the ordinary man or woman stands as a guard, bearing witness to the ebbs and flows of change. Their gaze, unclouded by bureaucracy or bias, offers an optical prism through which the true essence of societal transformation is refracted.

Through their lens, we glean insights beyond statistical analyses and policy briefings findings resonance in the subtleties of lived reality.

Join me as I uncover a riveting account that underscore the transformative might of factual evidence garnered from a conversation with an ordinary man, unraveling the essence of progress in its purest form.

As I hopped onto a Boda Boda for a ride through the bustling streets of Kampala, little did I know that our journey would offer more than just a means of transportation. Engaging in a conversation with the Boda Boda rider, the seasoned Boda Boda rider, provided a unique window into the transformative impact of Chinese investments in Uganda.

As we weaved through the city’s traffic, His gravelly voice cut through the noise, painting a vivid picture of Chinese involvement in Uganda’s development. ‘’You see, Friend, he began, ‘’it is very visible the Chinese, they have got their fingers in every pie in Uganda, they do’’

Intrigued, I probed further, prompting him to elaborate on the tangible manifestations of Chinese investment that he encounters daily on the streets of Kampala. ‘’oh, you name it! He exclaimed over the roar of the motorcycle engine, ‘’ Take a stroll down the road, and you’ll see those smooth highways. Yup, the Chinese built the Kampala-Entebbe Expressway, making travel a breeze.

As we navigated through the city. He pointed out landmarks that stood as testament of Chinese contributions. ‘’ And those power plants?’’ He shouted above the din of traffic. ‘’ The Karuma and Isimba dams, powering up people’s homes, all are bult by the Chinese.

As our journey continued, His insights devolved deeper into the social impact of Chinese Investments. “Oh, they’re not just about making money, you know,’’ He remarked earnestly. ‘’Remember that hospital they set up? The China-Uganda Friendship Hospital in Naguru, with state-of-the-art equipment, all courtesy of China.

Through my ride, I gained a newfound appreciation for the depth and breadth of Chinese investments in Uganda. From infrastructure projects to social development initiatives, the impact of Chinese engagement is palpable on the streets of Kampala and beyond.

As we reached our destination, I thanked the Boda-Boda man whom upon asking his name found out he is called Sebufu John for these invaluable insights into the transformative role of Chinese investments in Uganda’s development journey.

Our conversation served as a reminder that progress often takes shape amidst the hustle and bustle of everyday life, where ordinary individuals like John are witness to extraordinary transformations driven by global partnerships and shared aspirations for a brighter future.

The writer is a research fellow at the Development Watch Centre.

Chinese perspectives on Africa’s late industrialization

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By Nnanda Kizito Sseruwagi

Africa and China’s cooperation recedes hundreds of centuries back. Over 600 years ago, East Africa was one of the areas that cross-pollinated with Chinese civilization through interactions with the voyages of Zheng He, one of China’s greatest navigators. Zheng’s navigations to Africa manifested the Chinese traditional philosophy of harmony, a notion that still resonates in Africa-China relations today. I started with a cursory narration of Zheng He’s trips to Africa to lay out a historical context of these two ancient civilizations’ partnership in view of discussing the delayed industrialization in Africa, yet inspired by the quick modernization in China.

We are now in the first quarter of the 21st century – an age increasingly taken over by the fourth industrial revolution, and Africa remains largely a raw material production instead of an industrial production continent. Whereas we make up 18% of the global population, we contribute less than 3% to the global Gross Domestic Product (GDP).

I don’t intend to sound blameful of Africans and African leaders for Africa’s current development burdens as is commonly done by those who reason by analogy. But I cannot escape describing the depressing political anatomy of Africa currently. I believe that Africa is not on its own path to development, since all factors determinant of this have been overshadowed by Western hegemony. In an attempt to walk in the footsteps of Western countries by mimicking their current governance standards, Africa seems to have failed to “catch up” yet the material crisis at hand is that we are still trying to heal from the past, not to catch up with the future.

Chinese perspectives on Africa’s industrial development are key because of the comparative analysis they offer. China has recently trodden the path that Africa is on. Whereas China greatly learnt or reverse-engineered industrial processes from the West, the Chinese retained control over the vision and character of where their country was headed. As for Africa, the elite-capture by Western ideological persuasion and hegemonic institutions like the IMF and World Bank still obtains. Even when Africans genuinely intend to design policies that respond to domestic realities, they are still fraught with Western epistemic prejudices.

The first step to realising our industrial transformation is taking cognizance of who we are and where we want to go. The Chinese are so sure of who they are and where they are headed. They never blink off their course. As for Africans, our social, economic and political agendas remain dictated from Europe or North America. Whereas these agendas were violently determined during colonialism, the legacy of it is that we sincerely believe them and serve their realisation almost willingly today. The average African elite suffers a Stockholm syndrome which makes him/her a subconscious missionary of Western views about Africa which constrains our agency in mapping our development path. We need to decouple from this mental capture in how we view ourselves and our governments if we are to start domestically industrializing our economies. If an African entrepreneur like Joseph Magandaazi Yiga (Jomayi) is struggling, we need to help them save their businesses even if they individually get punished for their legal liabilities. We shouldn’t think of successful African business people like Hamis Kiggundu as fraudsters. This is purely a colonial-victim mindset.

In just 25 years, China sat on the drawing board and designed and executed a policy that saw it become an industrial powerhouse. Had they viewed themselves through Western lenses, all knowledge would guide them on a path that seeks industrialization across a period of not less than a century.  Africa should forget industrialization if all our central banks and ministries of finance remain controlled by Bretton Woods knowledge. We rather should sit on the drawing board as China did, and fix our troubles ourselves.

This does not mean that things will work in Africa as they worked in China. But it guarantees that for the first time, things will work out on our terms and we shall dictate our path to development.

We must also exploit the market we have of 1.4 billion people. Whereas we lack a price-competitive manufacturing labour-force, we can build momentum for a skilled work-force by internally trading and consuming each other’s goods. Research by the Harvard Business Review reveals that the share of intra-African exports as a percentage of total African exports is 17%, which is far below the 69% recorded for Europe and 59% for Asia. We cannot advance if we never trade with each other because we are still in the nascent stages of industrialization to capably compete at the global market.

Poor infrastructure in Africa must urgently be improved to reduce the cost of trade. Fluency in market logistics is the path along which industrialization happens. Africa should develop its seaports, roads, airports and railway lines to enable commerce. If it remains more expensive to trade with each other because of the disastrous infrastructure on the continent, we shall remain consumer colonies of other continents’ exports. We should maximumly exploit the Belt and Road Initiative to develop our infrastructure.

One factor has been constant in Africa’s underdevelopment – Western interference. There has been an adverse failure of Western development prescriptions for Africa. I don’t understand why we continue to follow such prescriptions to no avail. Western aid and its attendant ideological hegemony continue to promote economic and policy dependence in Africa. If we never seize control of our economies and have autonomy in thinking and designing policies for our continent, how shall we control our future? In whose hands shall Africa’s destiny lie?

The author is a senior research fellow at the Development Watch Centre.

nnandakizito@dwcug.org

 

China-Uganda Cooperation: A PARADIGM SHIFT FROM HANDOUTS FOR HANDSHAKES

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By SALIM ABILA ASUMAN 

In the realm of global aid, a paradigm shift has emerged and gone are the days of mere handouts. This shift entails fostering self-reliance and long-term prosperity, where emphasis shifts from handouts to handshakes and from aid to partnerships, as a result outdoing the traditional notions of aid.

As Uganda navigates its development trajectory, emphasis must be increasingly placed on “hand shakes’’ rather than preserving the cycles of ‘’receiving handouts’’. And so must other African nations begin to choose Handshakes over Handouts.

An outstretched hand invites one to a dance of equals, forging partnerships in shared strides, while handouts, breed dependency and hinder self-sufficiency.

In the seductive orchard of international traditional aid, many nations dream of self-reliance while side eyeing the tempting offers from the west, because of this it is high time for a reality check.

The outdoing of the traditional aid model has been propelled by a host of unpleasant characteristics that have long plagued its efficacy, and a result leading to it being abandoned.

Its sweet taste of dependency is like candy for the economy, except it rots from within. Take for instance, the case of Sub-Saharan Africa, decades of aid have often failed to catalyze meaningful economic growth, instead of thriving economies, many countries find themselves trapped in cycles of reliance on western aid perpetuating the very poverty they seek to escape.

Traditional aid comes with more condition than a prenuptial agreement. You Need a loan? Then better be prepared to swallow bitter pills of austerity measures and policy reforms that prioritize donor interests over local needs.

Recent events, such as the threat to withhold aid from Uganda over the Anti-Homosexuality Act, serve as stark reminder of this, this reaction underscores the broader dilemma of using aid as a diplomatic tool if aid as a cycle of handouts is preserved.

Have you ever played a game of hide and seek with a billion-dollar budget? That’s the thrill of western aid accountability, you will be searching for transparency and oversight in a maze of corruption and mismanagement. Building self-reliance on embezzlement and shady deals is like building a sandcastle with a doomed horizon, like a tsunami on the horizon.

 

This aid may come wrapped in a shiny package of development, but peel back the layers, and you’ll find the same old power play dressed in new clothes.

In this dynamic paradigm shift, a transformative concept has emerged, one that transcends the traditional notion of mere handout. It is the crux of a handshake a symbol of mutual respect, win-win cooperation, collaboration, and empowerment with aim of building a community of shared future for mankind.

This is an exaltation not to lament the passing of an outdated traditional aid paradigm, but to bid farewell to a concept that has long served its purpose. We bid adieu to the era of handouts in the form of aid as it gracefully exits the stage of history.

As we bid farewell to the handout era, let us welcome a golden age marked by synergy, empowerment, and the relentless pursuit of excellence.

 

In recent years, China’s presence in Africa, including Uganda, has been increasingly visible, particularly in the realm of development assistance. China’s aid offers significant opportunities for infrastructure development and economic growth.

In the case of Uganda and China, there are series of handshakes agreements span across various sectors, composing a vibrant symphony of mutual benefit and shared prosperity.

The handshake agreement between Uganda and China in infrastructure development sets the stage for ambitious projects aimed at enhancing connectivity and fostering economic growth. Through these agreements, China extendeded its expertise and financial supports to assist Uganda in projects like the Entebbe- Kampala Expressway, the Karuma Hydroelectric power station, and the Isimba Hydroelectric power station stand as testament to China’s commitment to enhancing Uganda’s transportation network and energy capacity. These initiatives not only improve connectivity within Uganda but also stimulate economic activity by creating jobs and fostering trade opportunities and as a result cultivating economic independence.

The relationship between China and Uganda extends far beyond infrastructure, with trade serving as a vibrant cornerstone of their collaboration. At the heart of the partnership between China and Uganda also lies a handshake agreement focused on trade and investment.

Bilateral trade volumes have surged in recent years, with Uganda exports finding receptive markets in China, while Chinese imports cater to Uganda’s evolving consumption patterns and industrial needs. Moreover, Chinese investments across key sectors such as telecommunications, manufacturing, and agriculture inject vitality into Uganda’s economy, driving innovation and fostering entrepreneurship.

In recognition of Uganda’s fiscal challenges, China has extended crucial support through debt relief initiatives and financial assistance programs. Participations in platforms like Forum on China-Africa Cooperation (FOCAC) has facilitated access to vital resources for funding development projects and alleviating its debt burden. Such assistance underscores China’s commitment to fostering sustainable growth and development in Uganda and Africa in general, laying the groundwork for long-term cooperation.

Beyond financial assistance, China has also provided invaluable technical expertise and training to Ugandan professionals across various sectors. Through collaborative programs, Ugandans have gained knowledge and skills in areas such as infrastructure development, agriculture and healthcare.

This technical cooperation not only enhances Uganda’s capacity to implement and manage projects effectively but also promotes knowledge exchange and mutual learning between the two nations.

At the heart of Chinese negotiation culture lies emphasis on relationship building and a win-win cooperation. Their negotiators prioritize relationship building before discussing business thus establishing trust and rapport where both benefits thus building a strong foundation of mutual respect and understanding.

It cannot be more emphasized, that through Uganda’s partnership with China in enhancing its infrastructure and enabling extensive trade holds the promise of a bright future. With these initiatives Uganda is poised to claim its spot in Africa’s development narrative. As this partnership continue to evolve, Uganda’s path to prosperity gain momentum, solidifying its place in the continent’s unfolding narrative of progress and opportunity. Certainly, Handshakes are better than Handout.

The writer is a research fellow at the Development Watch Centre.

 

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.

 

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