Tag: Development

Sino-Uganda Mbale Industrial Park: Revolutionising Uganda’s Manufacturing Sector

Posted on By Nnanda Kizito Sseruwagi

Chinese investments have played an inextricable role in Uganda’s emergence as one of East and Central Africa’s major manufacturing hubs. The dividends from the industriousness of Ugandan industries have transformed not just Uganda but also several other countries whose consumer markets depend on Ugandan-manufactured goods, including the DRC and South Sudan, to mention a few. Uganda’s industrial capacity spans several sectors, from electronics to textiles, ceramics to steel, and more – all fuelled by factories and industrial parks set up with the support of Chinese capital and expertise. Not only have these industries created jobs, especially for Uganda’s bulging youth demographic, but they have also reduced the country’s import dependency and fostered economic growth. The country now boasts over 50,000 factories employing more than 1.4 million Ugandans, with tens of thousands of workers in Chinese-founded industries, such as Liao Shen and the Sino-Uganda Mbale industrial park.

Uganda’s manufacturing revolution is closely linked to the launch of the Belt and Road Initiative (BRI) by President Xi Jinping in 2013, because BRI is aligned towards enhancing global trade and infrastructure. What spells BRI in Uganda is practically the sprouting of hundreds of standalone factories and many industrial parks spread across different regions of the country. The success harvested from this has been the expansion of the contribution of the manufacturing sector to our GDP from 6.7% in 2000 to 16.5% by 2024, as per UBOS. The broader industrial sector contributes even more, 27.4%. About 40,000 Ugandans are directly employed in diverse Chinese enterprises, playing an instrumental role in the country’s economic growth.

ENGO Holdings Limited and SIMI Technologies were the first electronics manufacturing plants in Uganda, launched in 2019 in Namanve Industrial Park. The firms behind this factory are ENGO Holdings Limited and SIMI, both spearheaded by Chinese investors. Among the products produced there include mobile phones (feature phones and smartphones), laptops, tablets, chargers, USB cables, earphones, etc. These plants can manufacture about 2,000 feature phones, 1,500 smartphones, and 800 laptops daily, among other products. Although currently these plants have to import some Chinese components, the long-term goal is to have full-scale commercial production employing trained local workers. With time, Uganda shall drastically reduce its reliance on imported electronics by producing enough to meet local demands, including the production of a million computers annually.

One of the leading factories manufacturing plastic products and packaging materials for beverages, processed goods, medicines, oils and pesticides is Heng Shang Plastics (Bugolobi, Kampala). Previously, many of these goods were obtained from China. However, today we have import substitution and reliable local supply chains because the factory is local.

Employment that transforms lives

Over 500 workers are employed in Unisteel Investment Uganda Limited, a Chinese-backed steel production industry established with a $100 million investment in 2024. For a developing country like Uganda, steel plays a critical role as the cornerstone of industry and construction sectors. From its use in manufacturing machinery to providing structural frameworks for infrastructure, it is easy to see the significance of Unisteel’s investment.

Sino-Uganda Mbale Industrial Park is the first national industrial park constructed overseas by Hebei province with the approval of the local government, which is of great significance to the BRI. Hosting over 40 companies producing smartphones, televisions, textiles, and steel, and employing around 10,000 workers daily, the park is one of 22 state-level industrial parks in Uganda, which were proposed by President Museveni and China’s Foreign Minister Wang Yi, and constructed by the Tian Tang Group. Mbale City was a very strategic location for this industrial park. It is Uganda’s third largest city, home to millions of people who provide labour and markets, and is also an extremely important border city. Its location also has the advantages of a well-developed transport network and complete infrastructure. Goods from the factories here can be distributed easily to countries of East Africa, North and South Africa, the Middle East and West Asia.

Economic Contributions

Guangzhou Dongsong Energy Company (Uganda) Ltd. is a subsidiary of the Guangzhou Dongsong Energy Group, headquartered in China. The company sits on 1,600 acres of land that is part of the China-Uganda Free Zone at Sukulu. It started operation in October 2018 following a US$62million investment in a bio-organic fertiliser plant, a steel and glass manufacturing plant, a brick baking plant, a steel plant and other related agricultural products. The Guangzhou Dongsong Energy Company (Uganda) Ltd has a 21-year mining lease extendable for 15 years to develop the Uganda-China Free Zone at Sukulu Hills into an industrial complex. Currently, the Chinese-based company is the first to introduce purely organic fertilisers on the Ugandan market, with production standing at over 300,000 metric tonnes per annum. It also produces Sukulu Concrete blocks for construction, with plans to add Sukulu Metal and Sukulu Glass. The company hopes to reduce the Uganda’s expenditure on imports of the industrial sector, which stands at US$377million, US$60 million for fertiliser and US$23 million for glass annually, respectively.

There has been a significant contribution of Chinese investors to the development of Uganda’s industrial capacity. Capital from China has laid a solid foundation for the country to become a manufacturing hub in East and Central Africa. The road to industrialisation and economic self-reliance is now paved. It is up to us to start the journey.

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

 

 

Learning from China: Adapting Development Strategies for African Contexts

Posted on By Nnanda Kizito Sseruwagi

Although it may not be possible to have a comprehensive cookbook of China’s rapid development recipes, a few policy frameworks implemented in the country can provide guidance. The Chinese development model has not been uniform. It has been at every stage punctuated by state-led industrialisation alongside export-oriented growth, and strategic global engagement, among other factors/ policies. Africa sets its sights on China for direction, as a late developer, because China has mastered the art of leapfrogging growth or catching up. However, given the disparate and diverse political and economic characteristics between the two entities, we need to carefully tailor and adapt what works and leave what doesn’t, from the Chinese blueprint of late and rapid development.

There is a unique political economy framework that made China’s development success possible. Whereas Deng Xiaoping is highly credited for instituting transformative reforms, there was a strong, centralised state which he leveraged to implement pragmatic policies, i.e., special economic zones (SEZs), massive infrastructure investment, and education and technical training to spur human capital development. Deng was also granted a monopoly of power rendered by the Communist Party, which allowed him to have continuity of his policies under the stability of a cohesive political structure. It was also workable to implement policies on a largely ethnically homogenous population, with a social history of collective discipline embedded in Confucian cultural ideas. Such moral compulsion from social norms and habits can hardly be transplanted, but it facilitated the rapid policy implementation we see in China. Additionally, industrial transformation was timely in a nation which was poised to reform its large agrarian economy.

African nations emerged out of colonialism with significant infrastructure gaps. The post-colonial contexts they find themselves in require that they assert economic sovereignty and push for state-led development, which fits well with the Chinese model. It has, indeed, been China at the frontline of supporting Africa’s move to bridge infrastructure gaps, supporting such projects as Kenya’s Standard Gauge Railway and Ethiopia’s Addis Ababa-Djibouti Railway, under the BRI, among countless other projects in several African countries. Moreover, China never lends itself to political interference in Africa as a precondition for its investments, as is common with Western aid and development finance, which comes pegged with prescriptions and conditionalities of all manner, eroding away the autonomy and agency of African states.

The diversity among and within the 54 African nations, however, implies that the continent’s political economy is widely different from China’s. We have so many ethnicities, are corrupted by colonial legacies, plagued by electoral volatility undermining policy continuity, fragmented by opposing governance structures, which ultimately complicates state-led development initiatives.

Weak institutionality and corruption are a serious hindrance to Africa’s development efforts. Weak institutions make China’s state-led, long-term development strategies hard to replicate, because governments face significant opposition and illegitimacy, making the long-term stability that shelters growth absent. Corruption disorients public-spiritedness, turning ruling regimes into cash-and-carry kleptocracies. This is the challenge for countries like the Democratic Republic of Congo, making the implementation of large-scale projects unsuccessful. There is a need to earn legitimacy for African governments by ensuring merit-based and accountable governance that serves all citizens without accentuating ethnic differences. Traditional leaders should also not be merely co-opted but fundamentally involved in local and national development programs, so that they view state development policies as an inter-collective program in which they and their co-ethnics have a stake, and must therefore take responsibility and involvement.

While China’s development leveraged export-led growth to satisfy the global demand for manufactured goods, Africa finds itself in a different context. It is a resource-dependent continent; its economies survive on the extraction and sale of primary commodities like minerals, oil, or agricultural products. The key to transforming this status quo to increase returns rests in domesticating ownership and ensuring the locals have a higher stake in the businesses and industries. This will nip profit repatriation and rent-seeking in the bud. Local ownership here does not mean that indigenous people must be the only ones with economic rights, but rather that even companies owned by foreigners must register locally and transfer the most profitable work of their business to Africa.

Whereas China’s development was easy to mobilise in a socially cohesive population, Africa’s ethnic diversity should not be mourned as a challenge; rather, African governments should embrace traditional and communal participatory approaches to social mobilisation towards development goals. Africa’s ethnic groups were historically assimilationist, and this cultural heritage must be encouraged as opposed to perpetuating colonial divisions that politicised divisive ethnicity.

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

 

 

 

Time Africa to Adopt China-Scale Development Commitment

Posted on By Nnanda Kizito Sseruwagi

Africa is tied to conventional, rudimentary, unambitious, lethargic modes of governance and political-economic behaviour. We pursue cliches of democracy and development and all related norms and conformities that have been taught to us by the developed, Western world with full blindness to our crucial realities.

We lack a grand strategy for development. We are adapted to incrementalism in everything – hoping to make progress through small, gradual steps rather than largescale, ambitious reforms. This road we are on is unlikely to deliver development. And the window within which Africa must catch-up up will eventually close.

There is no guarantee that we cannot be conquered again if we don’t stand up quickly and hold a place as a peer with all developed nations. This child-like place that Africa occupies in the world is not just humiliating but may eventually be exploited through new forms of imperialism in the future in ways we cannot comprehend today.

Think about the defining factors for the survival of nations in the world today; Artificial Intelligence (AI), synthetic biology, quantum computing, robotics, and clean energy. Where is Africa’s involvement or contribution in the global competition to advance in these fields? We only seem to be offering raw materials. In fact, we are the raw materials.

In a world with advanced AI systems, where we face risks of artificial general intelligence (AGI) becoming misaligned with human values, what would Africa do to defend itself against attack in a war where AGI is optimized by an enemy country to cause catastrophic harm based on racial identity? As a continent vulnerable to pandemics, what contribution is Africa making to the development of synthetic biology to enable rapid vaccine development?

Our net contribution to the development of any of these technologies that will shape the future is close to nothing. But the consequences of this may not be as simple as missing out. Lagging behind in the next decades might slide us into new forms of recolonization unless we embrace a development model with the ambition, scale, and discipline exemplified by China’s rapid transformation.

The era and error of foreign aid inculcated in us a dependency on foreign/Western powers by which we ceded sovereignty and agency. Such dependency also drove us to withdraw our commitment to industrialization, infrastructure development, and self-reliance. Western masters disincentivized African governments from developing domestic capacity for economic sustainability because African leaders could beg or borrow to fill gaps in their national budgets. The result is where we are; capable of almost nothing in a world of tremendous opportunities.

Given the urgency of these matters, China’s example for rapid socio-economic transformation from a predominantly large agrarian society full of peasants, to an industrial power with vast skill and intellectual resource, should be studied with a goal to be appropriated and domesticated by African leaders.

Unlike Western nations where capitalism evolved organically and defined how society is governed and resources are distributed, China’s transformation emerged out of massive state-led investment in infrastructure, education, and industry, coupled with a relentless focus on self-reliance. It is the only country where the free-market enterprise developed highly without distorting the politics of the country. Because of this, capital has not succeeded in eroding the leadership of the Chinese Communist Party (CPC). Capital has not undermined the leadership of the Chinese people.

China also exposes the lie that has been told to developing countries especially in Africa – that it takes democratisation in the Western form, to develop. We have suspended all efforts and thought towards development by being tied in an endless web of political bickering over cliches like democracy, human rights, freedom, etc.

China has guaranteed the rights and freedoms of her people outside the normative governance models of the West. It has liberated over 800 million people from poverty without ticking any boxes that the West dictates to Africa as prerequisites for development.

Without Western democracy, China constructed 37,000 kilometers of high-speed rail between 2000 and 2020. Without Western democracy, China has urbanized over 500 million people, and lifted 800 million out of poverty. Without Western democracy, the CPC prioritized long-term planning over short-term populist gains and accountably executed the aims it set out to achieve for its citizens, with a discipline in execution unimaginable in the West.

Africa must suspend many political distractions and pursue a tunnel vision of development and socio-economic transformation. We are 1.4 billion people with a median age of 19. This is a demographic resource with potential to scale development – it is a tremendous work force. But the window to achieve this will not last forever. Our young people will grow old. The peace we enjoy is not guaranteed to last forever. We must coordinate our commitment to this goal when we still can.

The Writer is a senior research fellow at the Development Watch Center.

China’s path to comprehensive rural revitalization: Challenges and solutions

Posted on By Allawi Ssemanda

On 25th February 2021, Chinese President Xi Jiniping announced “complete victory” in the Country’s fight against extreme poverty. As the world louded China’s great success, President Xi observed; while his country had succeeded in eliminating absolute poverty, “the most challenging and arduous tasks we face in building a modern socialist China in all aspects remain in rural areas” and announced China’s strategy to ensuring rural development calling it a “major task in realizing the great rejuvenation of the Chinese nation.”

If critically analysed, rural revitalisation can largely be achieved by ensuring comprehensive strategies that target revitalization of rural areas which oils wheels of modernization especially in the sector of agriculture – the common characteristic of rural area.

Five years since China announced its success against extreme poverty, this opinion highlights some strategies Chinese government, enterprises and people – largely farmers can take – shoulder to shoulder in efforts to realise rural revitalisation as the country marches towards its second  centenary goal of “building China into a great modern socialist country in all aspects.”

First, ensure enough and steady power supply. Energy is a major driver of socio economic transformation of any society. It makes innovation and both small and large scale industrialization take place. Such small and large small scale industries come with among others important multiplier effects like employment opportunities which is key in the fight against poverty.  The development of the solar industry Jinzhai county in Anhui is credited for transforming the province’s 218 villages once registered as poverty stricken, helping lift out of poverty 89,700 people that were registered as poor. The World Bank argues that China’s remarkable economic growth is partly possible due to the country’s capacity to produce and supply energy to meet the country’s growth of energy consumption, thanks to the Chinese government and enterprises that continue to focus on energy development, especially clean energy.

Supporting and encouraging start-ups in rural areas is another strategy that can easily spark rural revitalization. Through start-up programs in rural areas, people can be empowered to gain entrepreneurial skills which is key in starting and running successful businesses. In Nanhai, Foshan, Guangdong province for example, local government with Chinese enterprises introduced “double nurturing” and nurturing industries, started entrepreneurial training targeting rural people helping them with start-up projects which registered significant progress in the development of small scale industries and individual business. Consequently, over 526 entrepreneurial leaders were trained with skills helping them to start their businesses. As a result, the county’s efforts of empowering rural poor was realised with over 5,087 people registered as poor being lifted from poverty.

Supporting local amenities and tourism is another strategy China can embrace to achieve Beijing’s goal of rural revitalization. China is blessed with countless natural resources such as lakes, rivers and mountains almost across the country. Save using such rivers and other water sources for agriculture and, natural resources such as water sources and mountains, if improved, can be used to attract  both local and international tourists. As President Xi Jinping noted in 2005, “lucid waters and lush mountains are invaluable assets.” Tourism sector can be magic. For example, other than paying to access tourist areas, there are other multiplier effects that come with tourism development. Improved security, infrastructure especially roads, hospitality sector like hotels which all contribute to employment opportunities and source of income are associated with the sector! In Shibadong village in Xiangxi, Hunan Province, after adopting the strategy of using local tourism as a way of fighting poverty, the village registered success that it was deregistered from the poverty register as locals income grew from 1,668RMB to 12,128 RMB.

Relatedly, China can use its huge size, big population and many ethnicities, to fast track its rural revitalization programs by encouraging ethnic integration and supporting them to use their local resources to bring about meaningful social economic development. Such strategies can help in revitalization of rural areas with minority ethnics where people proactively engage in production work than mindsets of “waiting, depending, and asking for help.” This strategy worked for example in Towankh Magget village (village 7), in Xinjiang Uygur, where government embarked on empowering locals through project of “one brand in one village” which saw the use of local resources to develop black fungus production, and a walnut deep-processing plant which all have contributed to social economic development of the area while leaving locals lives improved.

The other very important strategy that can help China in realising rural revitalization is putting people at the centre of everything. When people learn that whatever is being done is for their good and development, they all embrace and support such efforts. Development becomes easy as people are involved and willing to do anything possible to support what they know is theirs. As President Xi observed while opening 20th National Congress of the CPC; “this country is its people. The people are the country…bringing benefits to the people is the fundamental principle of governance.” Put differently, it’s clear to Chinese leadership that to achieve great rejuvenation of Chinese nation, the most difficult tasks are still in the country side. Considering discussed strategies and more relevant ones, we can safely argue that China is on the march as the country eyes realising her centenary goal of building a moderately prosperous society in all aspects.

Editor’s Note: This article was first Published by China Global Television Network – CGTN. 

A Better Deal: Why Africa is Turning to China for Development

Posted on By Sino Uganda Research Centre

By Nnanda Kizito Sseruwagi

Across historical times, empires that sought world domination eventually met with decline and decay. The American Empire in particular and Western countries in general are currently undergoing a gradual erosion of influence, power, and stability. Left to their own devices, blind and deaf to the calls for reform in how they interact with the rest of the world from the global south, the West/America is teetering in the footsteps of empires of yore – the Roman, the Ottoman, and the British empires. Having enjoyed global prominence for much of the 20th and 21st centuries, America is entering a period of decline.

The warning signs of decline are as clear. Unprecedented political polarization, widening economic inequality, crumbling infrastructure, rising national debt, and a polarized media landscape at home.

On the world stage, we are contesting America’s global dominance. China, which identifies with our “global southern interests,” has emerged as a formidable competitor, outpacing the United States. Whether in advanced manufacturing, artificial intelligence, or infrastructure development, China is dwarfing America. China’s Belt and Road Initiative exemplifies its ability to expand its influence globally, particularly in Africa, Asia, parts of Europe, and Latin America. Yes, even Europeans who are supposed to be cousins of the Americans in global politics are now preferring to buy goods like electric cars from China, because it is excellent and cheap.

America’s global leadership is waning on many fronts. It is likely to lose the war in Ukraine (Yes, it is its war against Russia). It lost the war in Afghanistan. It lost the war in Libya. America has burnt its taxpayers’ money on countless senseless wars and lost. But the most fatal war it is losing is the war for hearts and minds. More African/global southern countries/people are turning East for development support and comradeship in international relations.

We in the developing world did not create the international geopolitical vacuum which China is beginning to occupy. By departing from globally unifying interests and selfishly pursuing a self-righteous and self-destructive global order where it has the only and last say, America surrendered its comradeship with the nations of the world to the more self-effacing China, which promises and practices peaceful co-existence and shared development.

The relationship between Africa and China has evolved significantly over the past two decades, presenting a range of development opportunities for African nations. Africa is the world’s last most underdeveloped, poorest continent. We urgently need to transform from being agrarian economies to becoming modern, industrial nations. China has heeded our call and emerged as a dominant player in infrastructure investment across Africa. It is now narrowing a critical annual infrastructure investment gap of about USD 50 billion. Chinese firms have flocked to Africa, financing and constructing roads, railways, dams, airports, and establishing industrial parks. These are investments critical to economic growth.

In stark contrast, American investments in African infrastructure and manufacturing are significantly going lower with every passing year. The United States Department of State recently struck off Rwanda from the list of AGOA, implying Rwanda can no longer export goods to the United States tax-free. The cause of this drastic decision was that Rwanda decided to develop its domestic textile industry thus proscribing importation of second-hand clothes from America.  If indeed the United States was interested in the structural transformation of such a small, poor country like Rwanda, why would it be ruthlessly against developing its small textile factories?

Instead, America’s brazen self-righteousness is focused on decreeing governance and institutional frameworks around the world. It doesn’t matter what problem you’re dealing with; America knows it can be solved if you govern yourself according to its prescriptions and its model. No context, no questions. This is the hubris that China has emerged to challenge, not by force but by providing an alternative for the world’s developing countries.

China’s approach to investment in Africa is also characterized by a focus on long-term partnerships that drive industrialization and capacity building. Development is a long-term process. It requires sustained support no matter the circumstances. This makes China a reliable partner for developing countries because it does not intervene in the political governance of these nations. And it does not put conditions on its investments dependent on how these countries are governed. This is something America failed to recognise. But switching how it supports African governments based on occasional disagreements with laws passed by African parliaments or how elections are managed or how presidents behave, etc, America fails to be a long-term reliable partner on the development journey of African nations. China’s willingness to commit to long-term projects without imposing immediate political conditions stands in stark contrast to American strategies that often favour short-term results or regime changes when “American expectations” are not met.

It is not difficult to see why African states are going to cast their lot with China for a long time to come. China has positioned itself as a key player in Africa’s development journey. On the other hand, America has refused to hear us out. And is diving head-first into its global decline and decay.

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

China-Africa Relations: An Agreement Built in Glue

Posted on By Sino Uganda Research Centre

By Salim Abila Asuman

Have you ever tried gluing two pieces of paper together that are reluctant to stick together, one hesitant to adhere and prefers to do lumps with the stickier paste? Welcome to the world of building agreements where it is not only about making the glue work, but it is equally important that it must last.

In this article, I explain how China builds agreements with its partners into impenetrable bonds which even the most tenacious of parties cannot tear asunder.

Irrefutably, China is the unsurpassed in international affairs when it comes to the building of agreements. In contrast, Western nations often seem to randomly slap glue on their agreements and then are shocked when their agreements fall apart.

But what is the secret of China regarding the durability of their engagements, while those of Western nations are so easily broken and dissolved?

What worked for China’s approach was applying glue to and on every edge so that each and every corner should stick before going to other pieces. Now, think of the Belt and Road Initiative; it is an all-inclusive Chinese agreement.

The BRI is much more than a high-level infrastructure development undertaking; rather, it constitutes a matrix of associations built upon strategic loans and technological handovers underpinned by long-term cooperation. Each contract in the BRI constitutes one that inscribes an exercise of patience, trenched and designed to benefit both China and its various partners. Such a tie binds them together in mutual embrace from which it is hard to break.

The looming question is why do this agreement last, while those with the West often fail? Look no farther, the answer is in the glue, on how it is applied, the intension of applying it and the strength of the connection it formulates. Agreements with China are based on mutual respect and long-term cooperation.

It is not just an effort to sign the agreements; the effort is in ensuring that it lasts. This itself explains why most of the countries that find themselves involved in the BRI often find themselves in relationships which remain intact even at the face of challenges. China does not walk away after the initial deal but always stays on, reinforcing the bond as needed.

The foundation of Uganda’s rise to progress heights is based on the Agreement on Economic and Technical Cooperation between Uganda and the People’s Republic of China, binding the affluences of Uganda and China together.

The effort is not just in signing the agreements but in the sustainability of those agreements. This perhaps explains why nations absorbed in the BRI often find themselves in ties that last longer than challenges. China does not walk away after the first contract; it stays around, reinforces, and reassures the relationship where needed I repeat.

It is on this premise, that the commitments in each agreement China reaches serve as a foothold to provide solid joint ventures, technology transfer, and capacity building. It is a result of such a setting that with each passing day, Uganda and China’s bond becomes stronger economically thus laying a sound footing for sustainable growth.

However, there is no climb without risks, hence the Uganda-China Bilateral Investment Treaty, or as it were called, the Investment Promotion and Protection Agreement serves as a join, making investments stable and secure. Like a knot tied with precision, this treaty ties the two nations into commitments for building confidence and resilience against the uncertainties of the market.

Compare this to the Western treaties, that so often feel like the equivalent of sticking two pieces of paper together with a cheap glue stick, there is a connection, sure, but it is flimsy and prone to peeling apart under pressure.

Take, for instance, the Paris Climate Agreement, hyped as some sort of grand achievement; in reality, it was not. Some Western countries, perhaps due to altered political affluences or economic compulsions, have rolled back on their commitments or fallen short of their targets. Here, the glue was too thin, put on in rapidity and without consideration for long-term implications.

So, why does this happen? It is because most of the treaties formed in the West stand based on very short-term gains or politicking rather than long-term workable partnership. They may appear firm on the surface, but often there are imbalances in conditions underneath which may favour the more powerful nation with limited regard for the lasting effect on the weaker party. These agreements, in the absence of reinforcement(s), begin to crack and fall apart when circumstances change.

Another reason is due to the absence of a follow-through. In many Western agreements the parties simply walk away once the ink is dry, assuming signing a document is enough to hold it. However, without consistent effort even the best intentions crumble.

China treats agreements as ongoing commitments. It will not refrain from applying more glue if needed; check in, adjust terms, and see that both sides are well glued, no doubt China-Africa Relations is built in glue.

The writer is a research fellow at the Development Watch Centre

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

Posted on By Sino Uganda Research Centre

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 modernization 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 built 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

Posted on By Sino Uganda Research Centre

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

Posted on By Sino Uganda Research Centre

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

Posted on By Sino Uganda Research Centre

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.