Tag: Sino-Uganda

China-Uganda 60 years of Diplomatic Relations

Posted on By Sino Uganda Research Centre

China and Uganda have a long diplomatic history dating back to the post-independence era. China is among the few countries that recognized Uganda as sovereign country just days after independence. Since then, Beijing has been cooperating well with Uganda, offering Kampala support in different sectors that we cannot discuss the journey of Uganda’s socio-economic development without mentioning the role of China.

In education sector, China continues to do a tremendous work offering training opportunities to different Ugandans at different levels. By end of 2021, Beijing had offered Ugandans hundreds of undergraduate and postgraduate scholarships and over 5000 Ugandans benefited from China’s short course training opportunities covering different key areas such as agriculture, medical care, infrastructure, information and technology among others.  China is also collaborating with African universities funding research and other learning opportunities. Makerere University’s Confucius institute is among the many examples. Aware that human capital and well-educated and skilled people are essential to facilitate development of the country, one cannot discuss development of Uganda’s education sector and human capital development without mentioning China’s contribution.

In the field of agriculture, China has been playing a key role for more than 40 years. In 1973 and 1987, China invested and established the Kibimba Rice Scheme (Now Tilda Uganda) and Doho Rice Schemes which have increased rice production and provided employment opportunities to many Ugandans. Additionally, the South to South Co-operation has boosted agriculture in Mbarara, Kabale, Amuria, Wakiso, and Budaka. Agricultural technology demonstration hubs have been established in Kabale to boost horticulture. China has also been supporting fish farming by funding the construction of the Wakawaka fish landing site and the Kajjansi Aquaculture Training and Development Centre which is a national center for aquaculture research in Uganda. This has led to increased and sustained fish production.

In 2009 under the South-South Cooperation (SSC), in coordination with United Nation’s Food and Agriculture Organization (FAO), China launched FAO-China South-South Cooperation (FAO-China SSC) and established FAO-China Trust Fund. China invested $30 million in this program to to support agriculture in Uganda. China has since been supporting this program injecting $100 million in 2015 and 2021 for phase II and phase III respectively.

During phase II of China-FAO SSC, China sent 47 agricultural experts and technicians have to train Ugandans in the same field. During the expert’s two year stay in Uganda, they trained many Ugandans and helped to improve technologies used to in farming of various crops such as rice, foxtail millet, maize, grapes, apples and cherry tomatoes, as well as animal reproduction.

In energy sector, China’s contribution in Uganda’s energy is also visible. The Karuma dam hydropower station with capacity of 600 MW which under construction in Kiryandongo District is an example of China’s contribution in Uganda’s energy sector. The project is 85% funded by China’s Exim Bank and Uganda government is meeting the remaining 15 percent. The project is being constructed by a Chinese firm Sinohydro Corporation and is expected to be completed in June 2023. Isimba power station which became operational in 2019 was also funded by with a loan from China’s Exim Bank. Karuma and Isimba hydropower plants are identified in Uganda’s Vision 2040 as key projects to Uganda’s economic development.

In infrastructure development, China directly funded US $ 350 million for the construction of the Kampala-Entebbe express highway, which is the first express highway in Uganda. The expressway is a 51km, four-lane, dual carriage toll road linking Kampala to Entebbe airport. The stated intention of the highway was to; reduce congestion and increase the commercial viability of the Greater Kampala Metropolitan area, improve mobility and reduce travel times and vehicle operating costs, and provide better access to local facilities for communities and jobs.

The expressway has helped to improve mobility and travel times to the airport. The US $ 350 million loan will be paid in 13 years and current statistics from Uganda National Roads Authority indicate Ugandans have embraced using the road with average daily passages of 20,000 which is far higher than projected daily passage which UNRA had put at 13,000 passages.  This also means daily collections have risen which is a good sign that the road can sustain itself in terms of maintenance and paying back construction loan. Indeed, Joy Nabasa the spokesperson of Egis which was hired to maintain the road collecting the toll on behalf of UNRA recently told journalists that the number of passages is increasing daily. Last month, media reports indicated that the road toll had collected 13 billion shillings in 4 months alone.

Good road network is key in transportation of goods and services which is key for development. As two Chinese say; “Better roads lead to better life.” and “Build roads if you want to get rich” with more good road network, Uganda’s social-economic growth and match to middle-income status is a matter of time.

In health sector, China continues to play a key role in supporting Uganda’s health sector. For example, as a result of good relations between the two countries, China funded the construction of China-Uganda Friendship hospital at Naguru. The hospital offers health services to people, for instance, paediatrics, gynaecology, dental, and laboratory services.

On 10th June this year, a team of Chinese medical personnel arrived in the country and will stay in Uganda providing medical services to citizens. Since 1983, China has been sending a team of doctors and experts to help work with Ugandans in extending medical serves to Ugandans.,

In the wake of COVID-19, China has supported Uganda in the fight against the pandemic. China donated COVID-19 test kits to boost efforts against the virus. Additionally, Beijing donated up to one million doses of COVID-19 vaccines.

Considering the positive contribution, the two countries have witnessed over the last 60 years, it is a living a testimony that China and Uganda are good comrades, good equal partners and good brothers always working hand shoulder to shoulder with major aim of building a community of shared future and prosperity for mankind. Considering enormous opportunities that comes with this brotherly relation should be natured by people of both countries. This to happen, as a Chinese saying goes, “amity between the people holds the key to state-to-state relations,” with the bilateral relations between our countries were elevated to the level of Comprehensive Cooperative Partnership three years ago in late June 2019, our two peoples must guard these relations jealously.

Vianney Sebayiga is a research fellow at Sino-Uganda Relations Research Centre and a Student at the Kenya School of Law.

 

A Review of China’s Support to Uganda’s Agriculture Sector

Posted on By Sino Uganda Research Centre

“Only when the granary is full will people learn etiquette; only when people are well-fed will they know honor and shame,” says an ancient Chinese adage. One can argue that China put this saying in practice while nurturing her Sino-Africa relations by supporting agriculture sector.

In Uganda’s context, China has been playing a key role for almost 50 years. Indeed, in 1973 and 1987, China invested and supported establishment of Kibimba (Now Tilda Uganda) and Doho Rice Schemes. This increased Uganda’s rice production capacity on top of creating employment opportunities for the many people.

Through the South-to-South Co-operation, China has invested heavily and supported the Uganda’s agriculture sector. In 2009, working with United Nations’ Food and Agriculture Organization (FAO), China introduced a new programme FAO-China South-South Cooperation (SSC). Beijing backed this program and created a FAO-China Trust Fund with $30 million to support agriculture in Uganda.

In 2015, China launched Uganda’s FAO-China South-South Cooperation (SSC) phase II and injected $50million further supporting the country’s agriculture sector. This program received another $50million boost in phase III which was launched in 2021.

During the first two China-FAO SSC phases, China sent 47 Chinese agricultural experts and technicians on a two years mission. The experts are credited to have helped in skills development and exchanges. In particular, they helped to improve technologies used in production of rice, grapes, cherry tomatoes, foxtail millet, and apples. Also, the experts exchanged skills with Ugandan farmers in animal reproduction such as goats, pigs, and in fisheries. This project focused on exchanging mechanization, agro-processing and value-addition.

A June 2020 study entitled “Access and Adoption of Hybrid Seeds: Evidence from Uganda” published in Journal of African Economies credited Chinese agriculture support to Uganda that it has improved innovated agricultural practices. The study further reveals this has helped in addressing poverty challenges in Uganda’s rural areas.  

In October this year, working with Ugandan authorities, China will be Launching phase III of China-FAO SSC. This time, China will inject 2.39 million U.S. dollars in the program. Under phase III, China will send to Uganda 18 Chinese agricultural experts and technicians to agriculture sector. This project seeks to advance and support appropriate and effective technologies with aim of boosting the countries food security. More than 9,600 farmers of whom at least 30 percent will be women are expected to benefit during this phase while more than 200 Ugandan agricultural personnel will receive technical training.

From grassroots, several Ugandan farmers have already benefited from China funded Phase I and II of China-FAO SSC. Under the said two phases, farmers in districts such as Amuriat, Budaka, Kabale, Mbarara, and Wakiso among others. In Kabale, agricultural technology demonstration hubs have been established there which is boosting horticulture. China has also been supporting fish farming in the country. For example, China funded the construction of Kajjansi Aquaculture Training and Development Centre which is key in aquaculture research in Uganda.

Also, China funded construction of Wakawaka fish landing site. All this has seen increase and sustained fish production in Uganda. Uganda’s Fisheries sector is one of Uganda’s leading foreign exchange earners. The sector accounts for about US$200 million annually. The sector is also employing estimated 1.5 million people such as fishermen, boat owners, fish mongers, transporters and processors among others.

On Continental level, China’s support to African countries agriculture sector is also visible. During the 8th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC) held on 29th November 2021 in Senegal, supporting African countries agriculture was among the nine key areas Chinese president Xi Jinping pointed at where China would cooperate with African countries. The other eight areas are health, poverty reduction and trade promotion, investment promotion, digital innovation, green development, capacity building, cultural and people-to-people exchange, and peace and security.

Globally, China’s voice in promoting and advancing programs meant to fight famine has been loud. While attending this year’s G20 summit in Bali, Indonesia, China’s State Councillor and Foreign Minister Wang Yi made a plea calling for a strong cooperation to ensure a successful global food security agenda and reduce suffering of many due to hunger. Today, many countries are struggling with hunger. Recently, United Nations Secretary General Antonio Guteres expressed concern stressing that global hunger levels are at a new high. Guteres observed that in two years, the number of severely food insecure people has doubled from 135m to 276m today.

Also, among others, China’s Global Development Initiative seeks to address challenges like famine to ensure continuous development, with the aim of helping all people realize their dreams. The discussion above is a pointer that food security is key for national and global security and development. Aware that we can only attain food security by supporting and improving agriculture sector, recognising China’s contribution in supporting Uganda’s and Africa’s agriculture sector is prudent.

Ssemanda Abdurahim is a Research Fellow at Sino-Uganda Relations Research Centre.

Sino-Uganda Relations: The Upside Story from a liberal perspective

Posted on By Sino Uganda Research Centre

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

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

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

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

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

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

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

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

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

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

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

Marvin H Kalema is a research Fellow at Sino-Uganda Relations Research Centre, and a law student at University of Johannesburg, South Africa.