Tag: Uganda

GIVING BUSINESS BUSINESS

Posted on By Sino Uganda Research Centre

By Salim Abila Asuman

‘’Imagine this: smooth roads and railway lines weaved through our landscapes, not just connecting places, but stitching dreams to reality. They are not just routes; they are the veins of commerce, making business not just easy, but irresistible. ‘’

Now end that imagination, and let us embark on a journey into reality, the African continent is now the host of the Chinese funded Trans-African Highway network which includes the Caira-Cape Town Highway.

Additionally, the African continent is also a home to the following China funded railway lines.

The Mombasa-Nairobi Standard Gauge Railway (SGR) in Kenya, covering roughly 480 kilometers, its construction began in 2013 and was finished in 2017.

The Addis Ababa-Djibouti Railway, connecting Ethiopia and Djibouti, is approximately 76 kilometers long and was built between 2011 to 2016.

Abuja-Kaduna Railway in Nigeria was completed in 2016, covering roughly 186 kilometers. Construction began in 2011, was completed in 2014 and officially inaugurated for commercial services in 2016.

The Lagos-Ibadan Railway in Nigeria commissioned in 2021 has three major train stations running from Lagos through Abeokuta to Ibadan.

Tanzania-Zambia Railway (TAZARA), Tanzania and Zambia: established with Chinese assistance in the 1970s, approximately 1,860 kilometers, the railway has been operational since the 1970s, with ongoing maintenance and improvements.

Another reality is that Uganda will be home to the Kenya-Uganda Standard Gauge Railway (SGR): the projected length is approximately 273 kilometers, and it is intended to facilitate the transportation of goods from the port of Mombasa to Kampala, then to Kigali, Beni in the Democratic Republic of the Congo, and finally to Nimule and Juba.

Akin to veins these roads and railways lines play a crucial role in the circulatory system of our economy, serving as tubes they pump business into the heart of the economy bringing in and taking out various businesses.

As these roads stretch and railways weave through the vast landscapes, the ripple effects are profound, especially for entrepreneurs daring to dream big, at this point, it is only proper that I delve with you how these investments are not just installing tracks and asphalt, but also paving the way for innovation and expansion.

The arteries of commerce, once clogged by inadequate infrastructure, are now flowing with vigor. Improved roads and railways are facilitating the movement of goods and services, enabling entrepreneurs to tap into previously inaccessible markets and expand their reach.

In today’s interconnected world, connectivity is key and Infrastructure is not just about physical roads and railways; its about connecting people, ideas, and opportunities. Entrepreneurs are leveraging this connectivity to access information, recourses, and markets, empowering them to turn their business ideas into reality.

The journey from idea to reality is often fraught with challenges, but Chinese-funded infrastructure projects are paving the way for innovation and collaboration. By fostering an ecosystem of connectivity and collaboration, entrepreneurs are finding new ways to innovate, collaborate, and succeed in rapidly evolving marketplace.

At the heart of Africa’s development is the prospect of economic growth and progress. These infrastructure investments not only lay the foundations for commercial success, but also for long-term economic growth that benefits every aspect of society.

Homegrown brands that drive industrial growth benefit from enhanced infrastructure, from agricultural products to renewable energy solutions, these brands are pivotal in fostering economic development and connectivity across the continent, including Uganda.

In the agricultural sector, Brands like Kuapa Kokoo in Ghana and Ethiopian Coffee Export Corporation rely on efficient transportation networks for cocoa beans and coffee production, while Uganda Coffee Development Authority, Agrisol Africa Limited and Pearl Dairy Farms Limited expand their market reach.

The textile and apparel industries represented by brands like Dupies African Clothing, ShweShwekini and Nytil Uganda are leveraging improved transport infrastructure to access raw materials and distribute finished products.

In the realm of minerals and resources, African brands like Anglo Gold Ashanti, De Beers, Nigerian National Petroleum Corporation, and Uganda’s Tullow Oil rely on well-maintained roads and railways for efficient mineral and resource transportation.

Telkom, Safaricom, MTN Uganda, and Airtel Uganda are leading providers of telecommunications services, leveraging improved infrastructure to expand networks and reach underserved communities across Africa.

Renewable energy brands like M-KOPA Solar, and GreenPower Overseas Limited capitalize on improved infrastructure to deploy solar panels and home systems in off-grid communities, driving electrification and socio-economic development. Uganda’s renewable energy sector, represented by the brands like SolarNow and Fenix international, are rapidly expanding, benefiting from upgraded infrastructure to expand access to clean energy.

A concise way to say ‘’one gives business business‘’ is that ‘’one supports businesses’’ and China giving business business is a fact that resonates with a profound truth.

China gives businesses business because through Chinese investment and skills focused at developing transportation infrastructure in Africa, one’s company idea can be transformed into a reality, therefore giving their business ideas the business.

Transforming your business idea into a thriving reality is a riveting journey, complete with unexpected twists, exhilarating highs, and yes, even a few hilarious mishaps along the way. From the initial spark of inspiration to the triumphant launch of your brainchild, each step is a chance to unleash your inner visionary and craft into a legacy that echoes far and wide.

And let’s not forget the unsung heroes in this saga – the roads and railways that crisscross the landscape, tirelessly ferrying your goods to eager markets. With these vital arteries in existence, your dreams aren’t just dreams anymore; they’re tangible possibilities waiting to be embraced.

So, as you navigate the exhilarating maze of entrepreneurship, remember to savor every moment, relish every challenge, and above all, keep your sense of humor intact. After all, in the unpredictable world of business, a hearty laugh might just be your most valuable asset. Here’s to chasing dreams, blazing trails, and turning aspirations into epic adventures!

There has never a better time to turn your business ideas into reality and ride the wave of Africa’s transformation, your business will surely get business.

 

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

SINO-UGANDA RELATIONS HAVE ENTERED A CRUCIAL STAGE

Posted on By Sino Uganda Research Centre

By Steven Akabwayi

Early Feb this year, China opened a visa center in Kampala for ordinary passport holders, aiming to reduce congestion at the main embassy. The center was launched by the Chinese Ambassador to Uganda H.E Zhang Lhizong, purposely to ease travel for Ugandan nationals traveling to China for business and other activities.

The relations between Uganda and China have been grown rapidly over the years. It should be noted that by 2023,, the trade volume between the two countries had risen by 6.6%, reaching 1.14 billions

Uganda Airlines is expected to open direct flights between Entebbe and China’s Guangzhou City which will ease trade and also strengthen people diplomacy within the two countries.

China’s direct investment in Uganda reached 131million US dollars in 2022, ranking 10th among all African countries

President Museveni has always shown optimism on Sino-Africa relations, in one of his interviews in 2022, he demystified allegations commonly peddled by Western countries that Beijing expands its influence by drawing smaller economies into a debt trap.

“Africa has been having problems for the last 600 years due to the slave trade, colonialism, neocolonialism, and none of it was from China,” he said.

China’s engagement with Uganda is rooted in a shared commitment to development and prosperity. Over the years, China has emerged as one of Uganda’s most significant partners, investing in key sectors such as infrastructure, energy, agriculture, and healthcare. These investments have played a pivotal role in driving Uganda’s economic growth, creating jobs, and improving the quality of life for millions of Ugandans.

One of the most notable examples of China’s contribution to Uganda’s development is the construction of the Kampala-Entebbe Expressway. This vital infrastructure project, funded by China Exim Bank and built by Chinese companies, has not only eased traffic congestion but also enhanced connectivity, facilitating trade and investment within the region.

Moreover, China’s support for Uganda’s agricultural sector has been instrumental in boosting food security and rural livelihoods. Through initiatives like the Uganda-China Agricultural Technology Demonstration Center, Chinese experts share their expertise in modern farming techniques, irrigation systems, and crop diversification, empowering Ugandan farmers to increase productivity and adapt to climate change.

Critics often raise concerns about China’s involvement in Africa, citing issues such as debt sustainability and environmental degradation. However, such criticisms fail to acknowledge the agency of African nations like Uganda in negotiating mutually beneficial partnerships with China. Unlike colonial powers of the past, China’s approach to engagement with Africa is based on equality, mutual respect, and non-interference in domestic affairs.

Furthermore, China’s investments in Uganda go beyond infrastructure and agriculture, extending to education, healthcare, and human resource development. Through initiatives like the China-Uganda Friendship Hospital in Naguru and scholarships for Ugandan students to study in China, bilateral cooperation in the healthcare and education sectors has strengthened people-to-people ties and fostered cultural exchange.

The significance of China-Uganda relations transcends bilateral cooperation and holds implications for regional and global dynamics. As Uganda serves as a gateway to the East African Community (EAC) and the Great Lakes region, its strategic importance cannot be overstated. China’s investments in Uganda’s infrastructure, particularly in transportation and energy, contribute to regional integration and promote economic development across East Africa.

Moreover, Uganda’s participation in China’s Belt and Road Initiative (BRI) offers opportunities for connectivity and trade along the Maritime Silk Road and the Silk Road Economic Belt. As a landlocked country, Uganda stands to benefit from enhanced infrastructure linkages and improved access to global markets, positioning it as a key player in Africa’s economic transformation.

In light of the COVID-19 pandemic, China’s support for Uganda’s healthcare system has been particularly noteworthy. From donating medical supplies and equipment to deploying medical teams, China has stood in solidarity with Uganda in the fight against the virus. This demonstration of friendship and cooperation underscores the resilience of China-Uganda relations in times of crisis.

Looking ahead, the potential for deeper cooperation between China and Uganda is immense. From harnessing renewable energy resources to promoting sustainable tourism and enhancing digital connectivity, there are numerous avenues for collaboration that can benefit both nations and contribute to shared prosperity.

In conclusion, the relationship between China and Uganda is not only critical but also holds immense potential for shaping the future of both nations and the broader African continent. Through cooperation, mutual respect, and commitment to common development goals, China and Uganda can pave the way for a brighter, more inclusive future for all.

Steven Akabwayi a Research fellow at Development Watch Centre.

 

Four Decades and 800M People Out of Poverty: Lessons From China’s Poverty Alleviation Approach

Posted on By Sino Uganda Research Centre

George Musiime

At the dawn of African independence, Kwame Nkrumah is quoted to have said “Seek ye first the political Kingdom and all else shall be added unto you.” However, as reality has proved to us, whereas political freedom might have been a necessary condition for Africa’s economic freedom, some analysts contend that this was not necessarily a sufficient condition for economic freedom. Economic freedom takes rigorous and meticulous efforts and something has been lacking in the post independence-African effort. Evidence of this is the persistence of poverty as a major challenge faced by all African like many other states in the global south to date.

On the contrary, one nation that has been able to make massive progress in as far as stamping out poverty is concerned is China. The People’s Republic of China stands tall above all as a nation that has managed to lift out of extreme poverty nearly 800 Million Chinese over the past 40 years. To put this into context, this is the equivalent of 54% of Africa’s total population today or 20 Million people out of poverty each year over the past 40years. Even, the World Bank has credited China with a contribution of almost three quarters to total global poverty reduction, but how was China able to do this? A simple answer to this Question according to president Xi Jinping is;  Based on China’s unique national conditions and following the law of poverty reduction, China adopted a series of extraordinary policies and measures, and constructed a whole set of systems covering policy, work and institutions, which blazed a poverty reduction path forming an anti-poverty theory with Chinese characteristics.

Otherwise, what would the idea of shared prosperity mean on the global stage if it did not hold true at home? This is why China first sought shared prosperity for its own people.  Particularly, in the fight against poverty, the country is a beacon of hope for ending global poverty; one the rest of the world needs to emulate. According to President Xi, a key mission of the Communist Party of China is to eradicate poverty, improve people’s living standards, and gradually achieve common prosperity for all. In fact, if Africa and the rest of the world seek inspiration, there is no better or more credible source of inspiration than China when it comes to poverty eradication.

The Chinese poverty alleviation campaign employed a two-pronged approach focusing on stimulating economic growth through deliberately driving economic transformation and the creation of new opportunities especially for the poor members of society. Additionally, the government undertook direct initiatives with a bias towards disadvantaged areas with an underlying lack of access to opportunities but also focusing on poor and vulnerable households all across the board. This is a different approach to rolling out blanket-universal poverty alleviation programs without necessarily identifying the nature and context of people that need to be helped out of poverty. This coupled with well-developed infrastructure and developed human capital catapulted China to the attainment of the goal of eradicating poverty by the year 2020.

A key fundamental of this approach is realizing that national level poverty manifestation is always going to be the cumulative outcome of poverty at the individual level, household level, and community level all the way up to the national level. This is why president Xi, while speaking in the northern province of Hebei in 2012 declared the need for well-focused measures to help country-men facing difficulties out of poverty. This would follow from understanding the situation of every poor citizen, and every household in China, through a series of steps starting from Awareness campaigns, application reviews, door-to-door investigations, deliberate disclosures at the village level, examination of disclosures at the township level and eventual approval at the national level. This meticulous trickle-down procedure intended to weed out “fake beneficiaries” allowing all efforts to be directed at the most deserving members of society.

To accomplish this, the government assembled and deployed Poverty alleviation cadres all across the nation. Moreover, critical to the poverty alleviation effort was maintaining a database of all impoverished households keeping data such as; identification and evaluation data, causes of poverty, assistance plans, incomes and expenditures of impoverished households, policies and guarantees received, relevant agreements,  et cetera . This data not only helped with targeting interventions based on the unique situation of the poor households but also with both evaluation of effectiveness of the approaches as well as ensuring people do not slip back into poverty once they have been liberated through monitoring and hence sustaining the gains of the nation’s poverty alleviation efforts.

As countries looking to help our people out of poverty, we like China at the onset might have made significant gains on the fronts of investment in infrastructure and human capital, however, we are lacking when it comes to deeper understanding of our people, the causes of their poverty et cetera. The Makerere University, college of humanities and social sciences for example identifies, health challenges, unemployment, lack of access to productive resources such as land, credit and market information as the leading causes of persistent poverty. These causes are not universally crosscutting thus there is no one size-fits-all measure of poverty alleviation. To use the words of president Xi, the design of poverty alleviation programs should be based on the unique conditions of the intended beneficiaries.  For example, the development of labor-intensive industries to absorb skilled unemployed labor force, skilling campaigns for those poor due to a lack of the necessary skills for the available job market, providing market incentives to spur production hence creating competitive labor markets et cetera: an approach where we addressed each unique instance of poverty through its own unique intervention. Unless we develop a deeper understanding of the nature and context of the problem we seek to address, we may still struggle to attain economic freedom for our people.

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

 

Restructuring the AGOA Partnership: Lessons from China

Posted on By Sino Uganda Research Centre

By Shemei Ndawula

I’m I a little late to the party? It seems all the experts have already weighed in on the recent move by the Biden administration to exclude Uganda from the African Growth Opportunities Act (AGOA) platform. Just last week the inevitable happened with Uganda being struck of the list of AGOA participating nations. AGOA  is a trade preference program that grants duty-free access to the US market for eligible sub-Saharan African countries. It was enacted in 2000 and has been extended several times, most recently until 2025.

This platform is supposed to promote economic growth, development, and integration in Africa by encouraging exports, investment, and good governance. However, after more than two decades of implementation, AGOA has in many ways failed to deliver on its promises and becomes increasingly irrelevant and ineffective in the face of new global challenges and opportunities.

I believe AGOA, like most United States backed interventions in the region often marketed as “silver bullets to Africa’s problems” has always had its limitations. Like most of these projects it often comes down to taking money from the poor people of a rich country and giving it to the rich people of a poor country. On top of which there’s often so many explicit and implicit strings attached that sometimes the line between diplomatic aid and diplomatic coercion become a little blurred.

Despite Uganda getting large sums of foreign aid from the United States every year, there’s little that the ordinary Ugandan can show of the impact. Uganda is or has been one of the biggest beneficiaries of United States aid programs being the 13th largest “earner” of US foreign aid on the continent. However, a casual walk through Kampala will show a glaring disparity between these figures and the reality of an average Ugandan. It is high time that the Biden administration rethinks its aid policy especially within the region.

I really wonder why more development partners are not looking into adopting a more Chinese-like approach to bilateral aid which could offer greater incentives and support for African countries to engage in trade and investment.

It has been argued by several international observers that AGOA has failed to properly utilize investments, with only 18 of the participant countries developing national strategies on how to benefit from the program. This disparity reflects the complacency most countries have cultivated white such programs.

Meanwhile the Chinese approach to foreign trade especially with Uganda focuses on targeted investments and infrastructure development to drive economic growth. These aid projects, specifically in the infrastructure sector have got a much wider trickle down effect in the national economy.

I dare say that in the slightly over two years, the Chinese constructed Entebbe Expressway has been open to the public has directly benefited more Ugandans than the over two decades of the AGOA initiative.

The Chinese-like approach to foreign aid also focuses on fostering economic growth and development without imposing strict governance requirements. It seems counterintuitive to use an economic platform to address governance disparities between two countries.

There is need to  focus on strengthening regional institutions and promoting cooperation among African nations to create a more integrated and prosperous continent which is a vine of great opportunity the AGOA partnership should have tapped in.

To restructure the AGOA partnership along the lines of the effective Chinese foreign policy model, the United States should consider the following steps:

Reevaluate the current AGOA criteria and reduce the emphasis on frivolous governance requirements allowing African countries to focus on economic growth and development. Certainly as a diverse continent, each country has a rich history of governance modules which are better suited for our governance than anything else that’s being imported.

It would also be ideal to make investments in value-added manufacturing and industrialization to help African countries diversify their economies and create more sustainable jobs.This way, we will certainly have more to bring to the table when it comes to trade. The Chinese are already doing this with early success in the industrial parks of Kapeeka and Mbale where they have set up  and operate.

Promote regional integration and strengthen regional institutions to foster cooperation and development among African nations. The AGOA  platform should also explore  targeted incentives and support to encourage African countries to effectively utilize the benefits of the AGOA partnership and develop national strategies for economic growth.

Our generation is fortunate enough to stand as witnesses to the crumbling of the old world order, The People’s Republic of China has been ahead of this curve with the Belt and Road Initiative as well as the South-South Cooperation and if other nations and economic aid platforms would like to have a similar impact on Africa, they may have to study and integrate these strategies within their own development strategies to achieve better results.

The writer is a research fellow at Sino-Uganda Research Centre.

Non-Aligned Movement Offers us Hopes for a Multipolar World

Posted on By Sino Uganda Research Centre

By Nnanda Kizito Sseruwagi.

The world’s bipolar power structure which had determined the security policies of the two global powers, the USA and USSR, collapsed with the disintegration of the Soviet Union in 1991. This left America as the sole power with global dominance. I think that the inherent structure of unipolarity and the U.S.’s strategic position as the unipolar moral whip of Western neo-liberal democratic principles threatens any prospects for world peace and makes conflict likely. However, I also observe that the Non-Aligned Movement (NAM) is steadily pushing against the U.S.’s unipolarity, and promises to collapse it without dissenting into war as is normally feared by hegemonic stability theorists.

Unipolarity is where a single state exerts military and economic power, and social and cultural influence over other states and eradicates competition on the landscape of international relations. The prevailing global geopolitical dispensation rests on the United States’ institutional and ideological dominance, with an international order expediently designed after the Second World War to sustain America’s primacy in great power politics. But that privilege is about to change with the collaboration of NAM’s 120 member states with China and Russia.

Whereas the American hegemonic order seems secure against would-be hegemonic challengers like China and Russia, NAM seems to perennially and steadily resist and challenge the liberal basis of U.S. hegemony, which is presented as a transparent, democratic political system. Supported by but not absorbed by China and Russia, members of NAM are making it harder for America to enjoy its cherished post-war world order.

I am inclined to agree with one of the world’s leading experts in the field of security studies, Prof. Barry Possen, who argues that unipolarity is in decline and that the world is shifting towards multipolarity. Multipolarity is where power is distributed among several states with similar amounts of power/influence. A great political scientist and international relations scholar of global repute, John Mearsheimer, shares a more controversial view, arguing that America’s liberal international order was flawed from its inception and thus destined to collapse.

America designed a world order where world states had to yield their decision-making authority to American-controlled international institutions. However, since the majority of states organized under NAM now greatly care about their sovereignty, autonomy and national identity, they have rebelled against and outgrown the US’s policing. America’s self-righteous hubris as the world’s policeman, and the hypocrisy with which it preaches and enforces Western liberal-democratic values ostracized it from the global south, hence indirectly propping up its nemesis, China. However, China has not yet marshalled sufficient power to contend with America to the point of toppling it from unipolarity to bipolarity. And for China’s strategic stability as an influential world power, it might never push the U.S. to that tipping point.

As the largest grouping of states worldwide after the American-dominated United Nations, and with its hallowed principles of mutual non-aggression, mutual non-interference in domestic affairs, equality and mutual benefit, and peaceful co-existence, and with China closely tied to supporting these principles, the Non-Aligned Moved seems to pose a serious challenge to the Hegemonic Stability Theory (HST). Therefore, it is no longer persuasive for proponents of the US’s unipolarity to claim that the international system will be destabilized to a clashing point of war (Thucydides trap) if America ceases to enjoy the place of a single hegemon.

Proponents of the HST usually rely on the Pax Britannica (the period of relative peace between great powers when the British Empire enjoyed global hegemonic dominance) and Pax Americana (where relative peace was experienced in the world after the end of World War II when the United States became the world’s dominant economic, cultural, and military power) as evidence for the stability of hegemony. However, they forget that the central mechanism in hegemonic stability theory which revolves around the provision of public goods by a powerful actor has been disproved by China, which has extended public goods to the majority of global southern countries without exercising hegemony, and most importantly, while supporting the principles of non-alignment.

 

 

Members of NAM are most likely to further dilute the U.S.’s influence as a sole global power by endorsing, supporting and even joining multipolar institutions and initiatives like BRICS (Brazil, Russia, India, South Africa and other countries), and the Belt and Road Initiative (BRI)- a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations. The highlight and promise of BRICS is its attempt to redesign the global financial architecture and liberate it from the tyranny of America’s Bretton Woods institutions. It is unimaginable for the U.S. to retain its unipolarity if its financial web is torn apart with the support of NAM for BRICS and other like institutions.

For all the criticisms that might be levelled against the NAM, it has stood the test of time. Its member states are loosely and flexibly bound together by enduring principles that seem simple but whose strength lies in their simplicity. By declining to take positions with any power bloc, NAM members might be the biggest architects of global peace since the Second World War. They have pursued and promoted amicable coexistence on the international stage, exposing Western moral hubris in the ongoing genocide against Palestinians by Israel, and many other conflicts. This stance has challenged the unipolar posture of America in the world and demonstrated a desire and possibility for a more multipolar international system.

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

 

 

 

They Came, They Saw, They Joined: China’S Association With G77 

Posted on By Sino Uganda Research Centre

By Steven Akabwayi

While at Kigezi High School Kabale, we had a teacher who was fond of making fun of students but we could find it hard to hate him because of his great sense of humor and storytelling skills that made us fall in love with history.

One of the remarkable phrases I remember from one of his stories was Julius Caesar’s Latin statement “Veni,vidi, vici” loosely translated as “I came, I saw, conquered.”

Ceaser made this statement while writing to one of his friends Amantius who also served in a Roman Senate around 47 BC informing him about the quick victory in a short war against Pharnaces II of Pontus at the battle of Zela in modern-day Turkey.

Unlike most students, I never used to view history as just a subject, to me it was a shared adventure a journey through time of not just reciting dates and names but also drawing moral lessons from historical stories.

It’s upon Caesar’s statement “ I came, I saw, I conquered” a phrase that I base China’s association with the G77 countries informing my article’s title “They came, they saw, though they never Conquered but instead they joined”. Just like Uganda’s Permanent Representative to the UN Ambassador Adonia Ayebare who is also coordinating both NAM and G77 summits mentioned while appearing on one of the national TVs, in international relations, numbers do matter a big deal.

China’s association with the G77 countries offered it an opportunity to collaborate with over 134 countries in terms of collective bargaining and negations with the dominant Western countries mostly on multilateral agreements at the UN level.

It’s not a secret that China, just like the rest of other developing countries, continues to face unfairness and marginalization by imperialist countries in today’s world order where the West collectvely advoacte for the so-called rules-based order which sadly the West especially the U.S and allies again cherry-pick which rule to follow but call out others in event of slight deviation which today, arguably is a new normal especially the way the U.S treates those countries Washington sees as small states especially in the global south.

From January 15th -22nd of this year, all roads will lead to Kampala Munyonyo where Uganda will be hosting two big international conferences back to back (Nonaligned Movement and G77+China). Regarding these two summits that will put Uganda in the spot giving it visibility both diplomatically and politically, China has chosen not to act as a usual guest in both summits, through their embassy in Uganda, China has taken part in major backstage preparations to ensure the smooth running of the two summits.

 

 

As a gesture of brotherhood it attaches to its relations with Uganda and indeed the rest of Africa and global south in general, the Chinese government donated over 70 SUV vehicles to be used in transporting delegates and other government officials who will participate in the two summits.

Speaking about the importance of Uganda’s Chairmanship of NAM and G77 Ambassadors Adonia Ayebare noted that the global South countries have woken up to the fact that they need to express solidarity through helping each other by sharing technology through the South-South Corporation. It should be noted that China attaches much value to the South-South Corporation this has been exemplified through various development assistance such as grants and direct aid, the South-South Cooperation Fund, Belt and Road Initiative among others.

In recent trends, Western countries have been making what analysts regard as kicks of a dying horse in their attempt to deny China the status of a developing country. By doing so Western countries hoped to suppress China’s contribution and significance towards the developing world. However, unlike in the colonial era, it’s not by surprise that the Western move of divide and conquer has been a miscalculation this time given the strong solidarity among global southern countries.

The G77+China has achieved remarkable milestones, it should be noted that in 2010, the G77 group appealed for a political will from developed countries to resist all protectionist measures and tendencies, particularly on the agricultural subsidies and non-tariff barriers on trade. This was two years after the 2008 financial crisis Whose effects badly hit developing countries. It was against this backdrop that the G77 attained what’s regarded as one of the major victories commonly known as the Bali package.

The Bali package emphasized trade facilitation by resolving a series of decisions aimed at streamlining trade allowing developing countries more options for addressing food security and boosting trade amongst themselves.

China being part of the G77 has been mutually beneficial offering tangible benefits to both China and the other global South countries. China has managed to leverage its association with the G77 by increasing its global influence giving it a platform to voice its interests as a developing country in terms of trade, climate change, and sustainable development.

Economically, within the past two decades, China has emerged as the largest trading partner among the G77 countries due to the enhanced market access and economic opportunities that come along with its association with the G77.

The writer is a Research Fellow at Sino-Uganda Research Centre.

 

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

Posted on By Sino Uganda Research Centre

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.

 

China-Uganda’s Win-Win Cooperation is Bearing Fruits

Posted on By Sino Uganda Research Centre

By Akech Sarah Elias

In international relations and foreign policy, diplomacy is considered to be a major catalyst for good relations of countries and a step-in introduction and implementation of social-economic development projects of a country. Like in human beings, good cooperation and relations among countries which is always characterized by effective diplomacy, international relations and foreign policy aid in promoting development of countries; because, in most cases, it is diplomacy that influence countries where to invest or which country to cooperate with. In that process, a country with good relations with neighbors and beyond is most likely to attract investments and developmental cooperation from such countries as opposed to those without or with shaky relations. Also, diplomacy and good relations of countries especially among neighbors and arguably beyond are key when it comes to promotion of stability which is very key in economic development.

Talking about foreign policy and diplomacy, whereas it is true that foreign policy is a guiding framework for national interests, and that it facilitates countries in determining their goals, values and national interests which results into formation of alliances and treaties, formed alliances and treaties at times are meant to strengthen one country against the other or indirectly promote hegemony. This explains why some countries especially from the west often impose conditions for their relations with other countries acting as superior other than equal partners as United Nations charter dictates that all independent countries are equal!

However, when it comes to China-Uganda relations and broadly, China-Africa cooperation, the two sides cooperation are a text book example of partnership of equals and win-win cooperation. For several decades, China has always based its relations with African countries guided by principles of sincerity, real results, win-win cooperation, amity and good faith while dealing with African countries! It is these principles today, that guide Sino-Uganda relations and in many ways, both sides are benefiting from this this brotherly cooperation.

In economic engagement, China’s engagement with Uganda has been characterized by substantial investments and collaborative projects. A 2021 report by the UN Conference on Trade and Development revealed that China had become one of Uganda’s largest trading partners and a major source of foreign direct investment.

Further, a 2019 report by the famous Brookings Institution, observed that China has also been actively involved in infrastructural development in Uganda with the main focus on transportation oil and energy and the report argued that such investments are key for Uganda’s social-economic development explaining that China is doubling down investments in Uganda and generally African countries key sectors at a time when fewer funders are willing to support infrastructure projects. One prominent example is the Kampala-Entebbe Express highway which was constructed with the help of Chinese funding. This project has enhanced connectivity, reduced transportation costs, and boosted trade within the country registering thousands of users daily.

China’s economic engagement with Uganda has been boosted by bilateral trade and investment agreements and treaties. A case in point follows the signing of the Free Trade Agreement in 2018 by the two nations which have fostered trade expansion. With China granting up to 98% of Uganda’s taxable items zero-tariff into their market, one can safely argue that trade between the two countries will grow further with Uganda’s agriculture sector benefiting more.

Still on economic benefit of a flourishing Sino-Uganda relations, the May 2021 China-Uganda Authorized Economic Operator (AEO) which came into force on 1st June 2023 will see the two friendly countries enjoy preferential policies in terms of document review and goods inspection. This will definitely facilitate the customs clearances of goods between the two countries thereby facilitating trade and by extension easing the work of Uganda Revenue Authority.

With AEO, Uganda will benefit from this arrangement in terms of streamlining trade finance and

revenue collection which is aligned to China’s Revenue collection practices and enhancement of

trade framework. If critically analyzed, the main informing aspect for Uganda to enter this mutual arrangement was on a basis of China’s stand on the global floor of trade. The arrangement was also meant to further the corporation between Uganda and China on the basis of the Forum on China-Africa Cooperation (FOCAC). This way, Preferential treatment will be accorded to the goods coming from China to Uganda and vice versa thereby strengthening trade between the two countries.

As a result of the good relations between the two countries and enabling environment, as of 2022, China’s direct investments in Uganda reached 131 billion US dollars. And, since the start of this year, Chinese enterprises in different fields such as food processing, mobile home appliances and textile industries have entered into Liao Shen Industrial Park and China-Uganda Mbale industrial parks injecting over 84 million USD in Uganda’s economy. Also, over 2200 jobs for locals have been created as a result of the said investments.

In conclusion, as a result of China-Uganda relations, the benefits coming from the said relations have been key in Uganda’s economic development process and hence. Therefore, despite some challenges and criticism especially from Sino-Africa skepticists, China’s significant role towards Uganda’s economic development cannot be ignored and the two sides as the two countries embark on building a community of shared future and prosperity in the new era.

Akech Sarah Elias is a junior researcher at Sino-Uganda Research Centre and a law student.

 

 

CHINA-AFRICA RELATIONS: A WIN-WIN FOR ALL

Posted on By Sino Uganda Research Centre

By Steven Akabwayi

Increasingly, China is becoming a beacon of hope for the African continent. Now that the BRICS is here bigger, and better than before with the addition of two African countries with Egypt and Ethiopia joining South Africa, China will leverage this opportunity to strengthen its economic foothold on the African continent.

Speaking at the BRICS summit,  South African President Cyril Ramaphosa who was the summit’s chair envisioned a community of shared development and progress between China and Africa referring to it as “ a win-win” partnership.

“Our relationship with China will be one of promoting win-win outcomes based on important projects that we have initiated such as the African continental free trade area that is going to be the engine of our economic development”, noted South African leader, Cyril Ramaphosa.

On the other hand, his Chinese counterpart President Xi Jinping expressed commitment to supporting Africa’s industrialization aspirations which will be achieved by rolling out the required initiatives. “China will launch an initiative in support of Africa’s industrialization”, Xi said adding that the Chinese government will also harness its resources for cooperation with Africa and initiate business to support Africa in growing its manufacturing sectors so as to realise industrializationand economic diversification.

Indeed, on the eve of the summit, in an Op-Ed, President Xi emphasised importance of mutual win-win cooperation between China and African countries which he emphasised will always be a guiding principle for China’s cooperation with African countries, writing that, it is “ten years since I put forth “sincerity, real results, amity and good faith” as the principles for China to develop its relations with Africa. The past decade has witnessed our joint pursuit of a China-Africa community with a shared future in the new era, and the completion and handover of a host of projects including the Africa CDC Headquarters, the Foundiougne Bridge in Senegal, the Nairobi Expressway and the Mombasa-Nairobi Railway, renewing China-Africa friendship across the vast lands of China and Africa…”

China has had several initiatives and interventions on the African continent one of them being the Belt and Road Initiative (BRI). The BRI that was launched in 2013 by President Xi Ping was based on the Silk Road that existed many centuries ago and acted as a global pathway for trade in goods and services also serving as a channel for sharing ideas and culture.

The BRI was primarily established to link East Asia and Europe through physical structure but was later expanded to Africa and other continents by the Chinese government significantly broadening the Chinese economic foothold on the continent.

Barely marking its first decade this year, the BRI’s impact have already been felt on the continent. Under the BRI there has been the establishment of railway networks in Eastern African countries connecting Addis Ababa and Djibouti, and other infrastructures such as ports in Kenya, and Karuma dam in Uganda among others.

These projects will accelerate regional integration by improving transportation and logistics which will boost economic development.

At the BRICS summit, member states expressed concern relating to trade-restrictive measures and inconsistencies stemming from international financial institutions such as the World Trade Organisation and the World Bank that are dominated by Western powers.

In his letter issued on 17th August, President Museveni with bitter concern condemned Bretton Woods institutionsafter the World Bank announced that it was freezing approval of new aid and loans towards Uganda the move that he described as an act an act of “provocation and arrogance”.

Many African countries have expressed resentment towards skewed financing arrangements from Western countries and institutions. These often come with stringent conditions that borrowers from developing economies must meet, the conditions which some observers say are always divorced from African realities and needs.

The harsh borrowing conditions by Western financial institutions have made most African countries turn towards China given its financing strategy that comes in the form of grants, aid, and loans at free or low interest rates.

The Chines loans are always directed on essentials sectors such as mining, transport and construction among others which boost Africa’s economies.

There has also been growing criticism and debates about unfair policies and practices by the Bretton Woods institutions.

Emerging economies have continuously called out America for holding unequal powers and favoritism towards Bretton Woods institutions weaponizing dollar currency for example through unfair sanctions.

It’s against this backdrop that the BRICS leaders tasked their respective finance ministries and Central Banks to come up with a viable plan for the use of local currencies, payment instruments, and platforms by the time they report back for the next BRICS summit.

Steven Akabwayi is a Research Fellow at Sino-Uganda Research Centre.

Medical Diplomacy: China is Building a Community of Shared Prosperity for Mankind

Posted on By Sino Uganda Research Centre

By Dr. Ham Wasswa Matovu

Last week, a team of Ugandan medical experts from district hospitals arrived in Beijing China. Funded by the Chinese government, the team will spend three weeks in China at one of the country’s top Universities, Tsinghua University to attend a Seminar on Health Care and Public Health.  This will boost their public health knowledge and health systems management so as to be able to make a tangible contribution when they return home.

Aware that China is one of few developing countries with a robust and well-functioning health system in the world, there is no doubt that the seminar will equip of medical team with the much-needed expertise and experience which will in turn help contribute in strengthening Uganda’s health sector. Through on his X account (formerly twitter,) Chinese Ambassador to Uganda His Excellency Zhang Lizhong explained that Uganda’s team in Beijing for the seminar under the arrangement of medical cooperation adding that; “delighted to see China-Uganda health communication & cooperation deepening through closer people-to-people exchanges.”

Studies indicate that despite some progress in addressing health sector challenges, African countries still face challenges among others limited training. A 2022 study published in the British Medical Journal Global Health which surveyed 47 African countries stressed the lack of refresher courses as a major challenge facing the health sector in the region. The study entitled “the health workforce status in the WHO African Region: findings of a cross-sectional study,” revealed that the region’s ratio of well-trained health workers is 1.55 per 1000 people which is below the World Health Organisation’s (WHO) recommended 4.45 health personnel per 10000 people.

The continent’s health sector challenges are a result of many factors among others inadequate or no training capacity, rapid population growth, weak governance of the health workforce, career changes and poor retention of health worker. In 2022, the WHO projected that the shortage of well-trained health personnel in Africa will grow to 6,100,000 by the year 2030 which is increment of about 45% if compared with figures of 2013 when the last projections were made.

The study; “the health workforce status in the WHO African Region: findings of a cross-sectional study,” recommended that to address these challenges, African countries must put up measures meant to boost training and recruitment of health workers, improve their deployment and retention and increase investments for building respective country’s health workforce to meet their current and future needs.

Reflecting on the above, one can only conclude that such trainings are needed our health sector to grow. China has a rich experience in this field. The country has had several reforms in their medical sector which has seen them become one of few countries with a robust functioning healthcare system and consequently significantly increased their life expectancy which is expected to even get better by the year 2035.

In 2007 for example, China embarked on planning another reform. In 2009, in consultation with the Central Committee of the Communist Party of China, on 6th April 2009, China’s State Council passed China’s Health Care Reform Plan promising to provide a universal primary health service to then country’s 1.3 billion people with the main being “everyone to enjoy basic health care services. Under this health care reform plan, it is the Government’s responsibility to build a safe, effective, convenient and inexpensive health care system covering both urban and rural residents.

Its major aim was universal health coverage by 2020 through strengthening health care delivery, health security and provision of essential medicines. This policy reform is a long-term endeavor but the returns are worth the investments. In 2022, China listed other key tasks for healthcare reforms major among them being the development of a multi-tiered insurance system.

In order to get the job done, the state council set up a state council health systems reform office where the activities of the reform would be coordinated. The following were the policy reforms.

Under social health security, the social health insurance package was extended, medical aid was extended to the eligible poor and those with catastrophic medical expenditure. The payment system was also reformed. Through this, 95% of the population has been covered by health insurance schemes by the end of 2017 and the so-called catastrophic health insurance introduced in all provinces.

Such a system in Uganda would reduce the burden of out of the pocket health expenditure and reduce suffering of many that find it hard to meet medical bills.

Today, China is implementing Healthy China 2030. The “Healthy China 2030” blueprint, was introduced by the Communist Party of China (CPC) Central Committee and the State Council, and it includes 29 chapters that cover key areas that focus on areas like public health services, environment management, the medical industry, and food and drug safety. The Primary goal of “healthy China 2030 is ‘all for Health” while its long-term goal is a universal health security system for China.

Important to note is that “Healthy China 2030” emphases disease prevention and encouraging people to adopt healthy lifestyles, improving the public health service system with aim of ensuring that ordinary residents will have their medical problems diagnosed earlier and so get timely treatment. Lastly, China wants to increase its citizens’ average life expectancy up from 76.34 recorded for 2015, to 77.3 by 2020 and 81 by 2035.

Aware that China is a developing country but has managed to achieve that much, even when it is quite challenging for the African setting, we ought to start on our own reforms. Like the Chinese say, a journey of 1000 miles starts with a single step. For Uganda, the journey should start with these training opportunities China is extending to Ugandan health workers through China-Uganda health communication & cooperation so that together, we continue efforts of building a community of shared for future for mankind in the new era of win-win cooperation.

Ham Wasswa Matovu is a medical doctor and research fellow at the Development Watch Centre.