Tag: Uganda

China-Africa Relations Bridging the Gap in African Countries’ Struggle for Educational Transformation

Posted on By Sino Uganda Research Centre

By Ssemanda Abdurahim and Charles Muwonge Chuck.

Over the years, the government of the People’s Republic of China has proved to be Africa’s
reliable development partner through supporting African countries strategic sectors. One of many key areas to note which China has greatly and religiously supported is human capacity building – a sector that is very instrumental in development of any nation. The education support China offers to African countries ranges university degree scholarships, both short and long term for professional and government financials as well as funding research and innovation programs. China has also been providing other material assistance such as helping in construction of schools and institutions as well as equipping others with computers and books.

In Uganda for example, by the end of 2021, China had provided over 5,000 short-term training opportunities for Ugandan talents, covering wide range of fields; among others agriculture, medical care, public administration, computer science and infrastructure.

If critically analysed, Chinese universities have gained more ground in the world rankings and as a result, thousands of African students are now looking at China for have attracted more African students.

Through the Forum on China-Africa Cooperation (FOCAC), China focused on supporting
African countries through capacity building by supporting talented Africans to gain expertise indifferent sectors. Indeed since 2009, China has been announcing scholarships for African
scholars during FOCAC’s annual summits. Specifically, just after the 2015 FOCAC summit,
China announced that Beijing would offer at least 30,000 scholarships annually to African
students. This has seen an increase of African students in students in Chinese Universities thanks to Chinese government scholarships that today, African students account for over 16% of China’s international students. This makes China the second country with the largest number of African students in higher institutions of learning replacing the United States of America and the United Kingdom that used to be African students’ main destination.

Similarly, China has been on the forefront of backing up Uganda’s need to transform her
education even before Uganda government’s implementation of the new curriculum. For
example, after the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC)
under the theme “China-and Africa: Toward an Even Stronger Community with a Shared Future through Win-Win Cooperation,” China quickly reacted in Uganda by setting up Uganda-Luban Workshop which was launched at Sino-Uganda Mbale industrial park. The multi-vocational skills training facility focused on offering courses in mechatronics innovation and intelligent application technology, steel making technology, refining technology, vocational skills trainings in electrical control among others. Indisputably, the kinds of skills that the workshop offered are a proper target for the new curriculum which was implemented by the government of Uganda. This multi-vocational skills facility was established as a result of President Xi Jinping’s promise during his opening remarks at the summit where he proposed the establishment of eight initiatives including the establishment of 10 Luban workshops in Africa to provide vocational skills training to the youth in Africa. Thanks to the Chinese Government that Uganda was one of the states thought of and the facility was a blessing.

Also, Chinese firms and enterprises are equally supporting African governments in strengthen
and improving education sector through offering grants, cooperation and partnerships. Under
such arrangements, Chinese firms continue to offer support to equip African schools with
required support to ensure that scholars in these schools acquire necessary skills for today’s
markets. In 2017 for example, China’s telecom giant Huawei provided laptops and internet
connection to schools in Kamwenge district. In May last year, Uganda Revenue Authority in
partnership with Huawei Technologies Uganda donated several computers to Nyarilo Secondary School in Koboko district. Since then, several other donations of this kind were registered in Tororo Girls School among other regions.

Relatedly, like many other Chinese firms, China National Offshore Oil Cooperation (CNOOC)
has been offering Ugandan scholars with scholarships in strategic fields. For example,
beneficiaries like Lamech Mbangaye and Ritah Nasaazi who graduated from China University of Petroleum in Shangdong Province as petroleum engineers are now employed by CNOOC at
Kingfisher oil fields and the two are among few Ugandan engineers at the core of the country’s
oil drilling activities. This manifests how China is mutually helping Uganda’s education sector to advance by training its scholars with efficient skills as the country works hard to move to attain middle income status.

If critically analyzed, Africa-China cooperation in education sector is strategic and mutually
beneficial. Partly, this is because, African countries’ capacities to give tertiary and higher
education to their energetic and young population are constrained. According to United Nations Educational, Scientific and Cultural Organization (UNESCO), Sub-Saharan Africa is one of the largest regions in the world with a small tertiary education enrollment ratio which stands at 9.4%. This is far below the global average of 38%. If analyzed, this means that with its 16% of the global population, Africa contributes just 1% of global research. In all ways, such
undersupply of tertiary education impedes the continent’s prospects of achieving one of the
United Nations Sustainable Development Goals whose major goal is providing universal,
inclusive and higher quality tertiary education.

That said, China’s education support to African countries is timely and will go handy in aiding
Africa as a continent to achieve her scientific research capabilities which is also key among the
goals of African Union’s Agenda 2063. Growing and improving human capital will in accelerating African countries development take off. Whereas this important support is often
viewed in context of competition between China and the United States of America for what
Sino-Africa skepticists call China’s growing global influence, China’s education support is much needed by African countries to improve in skills development of their citizens. Also, African students making China their top destination for education is not a coincidence. Despite the U.S having a million plus number of international students in their universities if compared to China’s over 492,000 international students, over the years, African students opting for China than the U.S have been on rise. If critically analysed, the trend can be attributed to facts such as; China’s progress in areas of technology and poverty eradication makes their education more attractive since it seems to offer practical and fast solutions. Also, unlike China, the U.S and European countries often make unfavourable demands such as requirements for visa applications and proof of large sums of money for prospective African students to join their universities.

When it comes to language issue, one can argue that the U.S and largely other European
countries have an advantage over Chinese universities when it comes to attracting students from Africa, western countries must stop looking at African students applying for school visas as destitutes running away from their motherlands by making them go through complicated
requirements to obtain visas. They should borrow a leaf from China’s side and make education easy for African prospective scholars to obtain visas. Like China, this should not be
discriminative whether the applicant has sponsorship or otherwise. Also, the West should not
see China’s support to African educational institutions as part of the so-called geopolitical
competition between China and Western countries but see it as it is; this assistance is much
needed for if equipped with necessary skills and technical knowledge, Africa’s young population will immensely accelerate Africa’s economic and development take off.

Critics of China-Africa relations should therefore know that for over 60 years, China and almost all African countries have forged unbreakable fraternity through our struggle against imperialism and colonialism, and embarked on a distinct path of cooperation in journey toward development and revitalisation. Together, the two sides continue to write a splendid chapter of mutual assistance amid complex changes, and set a good example for building an even stronger China- Africa community of shared future in the new era.

Ssemanda Abdurahim is a junior research fellow at Sino-Uganda Research Centre; Charles Muwonge Chuck is a Junior Research Fellow at Isimba Community Hub.

China-Uganda Relations Cooperation: A Michael Jordan Philosophy– we all win

Posted on By Sino Uganda Research Centre

By Ssemanda Abdurahim

Talking of China-Uganda diplomatic relations which were established way back in 1962, and now almost 63 years, you can practically realise that they have been strongly operating on a Michael Jordan principle. The ranked “greatest basketball player of all time” who played for fifteen seasons in the National Basketball Association (NBA), winning six NBA championships with the Chicago Bulls, Michael Jordan once remarked that “there is no ‘I’ in team but there is in win.” Similarly, China-Uganda diplomatic relations have always had this Jordan principle as their wheel of operation. Critically analysing this, China and Uganda work together and mutually as a team without any aspect of individualism other than winning together as a team. Put differently, as Chinese President Xi Jinping has repeatedly observed, China-Africa cooperation is founded on principle of mutual benefit.

For instance, when the construction of Entebbe Express Highway which was constructed with funds from China’s Exim Bank of China, the ministry of works and transport in Uganda clearly stated that the main project’s objective was to provide efficient mass-transit route between the vital cities of Kampala and Entebbe in the Greater Kampala Metropolitan Area (GKMA) and decongest Kampala. Upon its completion, the 49.56km project sparked off a manifestation of 2,206,558 users between January and April 2022 as registered by Uganda National Roads Authority (UNRA). While one may argue that it was not a grant but a loan, still, the completion of this mega project which has improved in mobility of goods and services plus other multiplier effects that comes with easiness in mobility of goods and services in multiple ways makes the project a double win to the country and to us as citizens.

Additionally, UNRA collected a total of 13 billion Uganda shillings from tolling the Kampala expressway between January 8, 2022 and May 24, 2022. In that same year, UNRA’s communications officer indicated that the average daily 20,000 passages had surpassed the projected daily average of 13,000 passages. These included the incoming and outgoing passengers, taxi operators, visitors and Entebbe residents. With this manifestation of the project’s great usage by Ugandans, the immediate questions in one’s mind include; is China’s development assistance needed in African countries’ infrastructure projects? do projects developed with Chinese assistance meet and answer needs of users? Are such projects able to sustain themselves? In contexts of Uganda’s Entebbe Express Highway, the answer to these questions is a resounding YES. However, if all such questions are skipped, there is no way we are never going to be vulnerable to negative framing and narratives which are not backed but often brands China’s development assistance especially infrastructure as debt-trap. We will not have the required immunity to realise that China has efficiently played its part.

It should also be remembered that the Entebbe expressway is not the only project that has been funded by the People’s Republic of China in Uganda. Between the years 2009 and 2012, a one hundred beds capacity hospital, Naguru was built at an approximate cost of US$8 million by the Government of China as a gift to Uganda. Its other name, China-Uganda Friendship Hospital stands as an emblem to reflect the existence of good diplomatic ties between the two countries. On continental level, China has funded similar projects in countries such as South Sudan, Sierra Leone Zimbabwe among many others.

However, China has not stopped at only establishing such projects but also severally provides medical assistance by sending medical experts to different African countries. To be specific in Uganda, China has been sending medical teams to Uganda since 1983 to share knowledge and skills with Ugandan counterparts apart and also treating Ugandan patients. Relatedly, China has also been a key and reliable partner to African countries while battling epidemic sand pandemics. A case in point is during Ebola outbreak in West Africa which ended in 2016. In Uganda, China’s contribution in battling Ebola and Covid-19 pandemic are still fresh among many.

It is therefore paramount that the critics of China-Africa cooperation and their disciples first pay attention to questions like; are China funded projects in Africa helping African countries to realise their development aspirations? Are such projects helping citizens? Otherwise, China should be seen as a player who promises his coach that he will score a goal for his club and indeed he scores. Whether the player’s club loses or not, this should not be a blame on him. For he promised and fulfilled . The rest should be examined by trying to understand what made the team lose yet it had a goal other than why did the player fail to make his team win. If this kind of analysis is paid attention to, then everyone will realise how China-Africa diplomatic relations operate on a Michael Jordan principle – the min-win cooperation.

Ssemanda Abdurahim is a junior research fellow at Sino-Uganda Research Centre.

Chinese Enterprises Social Responsibility a Sign of stronger China-Uganda Relations

Posted on By Sino Uganda Research Centre

By Moshi Israel

December, 20th 2022 is the day Chinese enterprises gave an account of what they have done to better the general society of Uganda. The Issuance of the Social Responsibility Report of Chinese enterprises in Uganda gives a chance for Ugandans to judge the impact of these companies on their lives across the entire pearl of Africa. If critically assessed, the report issued yesterday 20th at the Kampala Serena Hotel did not disappoint; Chinese enterprises have a high score on the Social Responsibility test in Uganda.

In his speech, The Ambassador of China to Uganda, H.E Zhang Lizhong noted the importance of president Xi Jinping’s ‘Nine Programs’ for future China-Africa Cooperation with an emphasis on the ‘A Hundred Enterprises in a Thousand Villages’ initiative aimed at reducing poverty and benefiting the common people. The Ambassador, noted “while carrying out practical cooperation projects in Uganda, Chinese enterprises have always attached great importance to social responsibility work. They have carried out a series of small but beautiful social responsibility projects that benefit local people in the areas of medical and healthcare, job creation, education empowerment and environmental protection.” It goes without saying that the Ambassador was spot on in his assessment.

Indeed, the guest of honor at the event Her Excellency the Vice president of the Republic of Uganda, Jessica Rose Epel Alupo commended Chinese enterprises for their assistance to Uganda in various sectors and especially with the Covid-19 pandemic. She reiterated the importance of maintaining strong ties between the two friendly countries. Further, franked by General Edward Kutumba Wamala the minister of Works and Transport, the Vice President also praised the progress made towards achieving direct flights from Entebbe to mainland China. On a critical but hopeful note, she requested China to work with Uganda to reduce the trade imbalance between the two countries and thanked the Chinese government for responding positively to reducing tariff barriers to a number of Ugandan exports.

The Social Responsibility Report comes as a bonus ingredient in the 60 years of China-Uganda mutual cooperation. It is a testament to how Chinese enterprises have impacted Ugandan society economically, environmentally, ethically and through philanthropic endeavors. Social Responsibility measures do not profit the enterprises themselves but can change the lives of locals immensely.

SINOCHAM has undertaken massive Corporate Social Responsibility (CSR) measures within the struggling health sector of Uganda by rendering medical services in areas they operate in. This was especially highlighted during the covid-19 pandemic as all SINOCHAM member companies joined hands to provide relief in form of cash, face masks, sanitizers and many other anti-covid 19 materials. The companies supplemented the support provided by the government of China to the government of Uganda. Districts like Arua and Bukedea got PPEs and food relief items respectively. Furthermore, medical teams from Yunnan have come to Uganda and brought with them Chinese advanced medical technology and continuously assist their Ugandan colleagues in improving their medical skills. Since 1983, China has sent 209 medical experts in 22 batches to Uganda and provided free treatment to millions of Ugandans. This is practical proof of what the Ambassador, H.E Zhang Lizhong referred to in his speech that together Uganda and China have “written a splendid chapter of mutual assistance.”

Many Ugandans recognize that unemployment is a key issue in the country especially among the youths. Too many young people are educated and have no work. Chinese companies are looking to play a big role in the employment arena by providing Ugandans with numerous job opportunities in a variety of sectors. H.E the Chinese Ambassador to Uganda noted in his speech at the ceremony that “CNOOC Uganda alone will help to create more than 20,000 jobs, another 35,000 job opportunities are on the way in Liao Shen Industrial Park and China-Uganda Mbale Industrial Park…”

For 36 years, the government of China has embarked on a journey to support Ugandan education through scholarships. Currently, over 1,000 Ugandans have been beneficiaries of these scholarships in areas of Science, Technology, Engineering and Mathematics (STEM). Chinese enterprises have played a major role in issuing scholarships to many Ugandans whose lives have been dramatically changed for the best. The China Communications Construction Company (CCCC), CNOOC Uganda Limited and Huawei Technologies have all impacted the Ugandan education sector by giving scholarships to many talented Ugandans. For example, through the International Scholarship Scheme, CNOOC facilitated students to undertake undergraduate and master’s studies in geosciences in Chinese universities. Eight Ugandans have so far benefited from this scheme. Huawei on the other hand, through its Seeds for the Future Program and the Future Internship Program has helped Ugandans to acquire hands-on training in areas of application and software, transmission, datacom, core network, wireless, radio frequency and device business. Chinese companies such as the CWE, CCCC, China Railway 18th Group and Synohydro have also helped to construct and renovate schools in Kamuli district, Busia and in Karuma. Chinese companies have also played a pivotal role in supporting Ugandan sports, providing safe drinking water, building boreholes, food relief and housing projects, protecting the environment by relying on innovative technology to protect mother nature.

When it comes to the Corporate Social Responsibility scale, Chinese enterprises weigh quite well according to facts on ground. There is still more room for improvement as Uganda faces new challenges every day. CSR is a good indicator of how far China-Uganda relations have come and how far they still can go. The Chinese enterprises in Uganda Social responsibility report is proof of the win-win China-Uganda partnership.

The Writer is a Senior Research Fellow at DWC

China’s development model: Lessons for Uganda and Africa

Posted on By Sino Uganda Research Centre

By Allawi Ssemanda.

Dear Editor, during a symposium on the implication of the 20th National Congress of the Communist Party of China (CPC) under the theme, “Forge Ahead on the New Journey and Work Together for A New Era,” Chinese ambassador to Uganda Zhang Lizhong introduced Chinese path to development to Ugandan think tanks and journalists describing it as the major engine that saw China transform from a poor developing country to become the world’s second largest economy.  Ambassador Lizhong explained that as a developing country, China decided to not to move with the so-called common model of modernisation and embraced path of modernisation with Chinese characteristics.

Following a Chinese development path with Chinese characteristics, China ‘has united and led the whole country, and the people in solving many challenging problems that were long on the agenda but never resolved, making many achievements that concerned the nation’s future. As we completed the building of a moderately prosperous society in all respects and achieved the first centenary Goal, China’s economic strength, scientific and technological strength, comprehensive national strength and international influence continued to grow. In 2021, China’s economic aggregate reached 114.4 trillion-yuan, accounting for more than 18 percent of the global economy,’ ambassador Lizhong emphasised.

With glaring achievements China has registered which includes being the first country globally to eliminate absolute poverty at a record time, arguably, such a path is way to go for developing countries like Uganda which is still grappling with poverty and key social service delivery.

Following Chinese path to modernisation with Chinese characteristics, China under leadership of CPC has been able to “accomplished the arduous task of eliminating extreme poverty. We have built the world’s largest education system, social security system and medical system, Chinese people’s lives have improved in all respects,” stressed ambassador Lizhong.

Upon that background and recalling the failed structural adjustment programs (SAPs) which International Monetary Fund (IMF) imposed on Africa, it looks clear that China’s path to development if considered may be the magic bullet for African countries to attain development and modernisation, more importantly, modernisation with “African characteristics”.

But how does China’s path to modernisation look like? What are some of its characteristics? Does it really suit African countries needs or, is it best model for African countries?

In his report to CPC’s 20th national assembly, Sectary General Xi Jinping highlighted what he described as systematic exposition of the unique features and essential requirements of China’s modernisation:

Firstly, the Chinese path is the modernisation of a huge population of the more than 1.4 billion people in china; Secondly, China’s path is the modernisation of common prosperity for all. Explaining that the immutable goal of China’s modernisation drive is to meet the people’s aspirations for a better life, Beijing stresses that China “will endeavour to maintain and promote social fairness and justice, bring prosperity to all, and prevent polarisation.” China argues that achieving common prosperity is a defining feature of socialism with Chinese characteristics and involves a long historical process; thirdly, China’s emphasises that “while continuing to consolidate the material foundation for modernisation and improve the material conditions for people’s wellbeing, we will strive to develop advanced socialist culture, foster strong ideals and convictions, and carry forward China’s cultural heritage.”

The other key characteristics of China’s development path are; the modernisation of harmony between humanity and nature. Here, China commitment that its modernisation “lies in building a beautiful homeland for man and nature to live in harmony.” Lastly, China’s path to development stresses modernisation of peaceful development. Ambassador Lizhong argues that “Chinese path to modernisation emphasises mutual benefit and win-win cooperation with other countries including Uganda, promotes the building of a community with a shared future for mankind, and strives to contribute to peace and development of mankind. China will not tread the old path of war, colonisation, and plunder taken by some countries. That brutal and blood-stained path of enrichment at the expense of others caused great suffering for the people of developing countries.”

From the above, we learn that in pursuit for her development, China put her national interests first; focused on internal political concerns; and maintained firm strategic resolve with determination to never yield to coercive power as the country sought its development.

Also, from China’s path to modernisation, Uganda and Africa in general can learn that you don’t loose your identity in order to modernise. China blended modernisation to its traditions. For example, despite modernisation the country is going through, to date, family hierarchy in China is respected. It is the same rational spread throughout other institutions in context of respect.

Put differently, Chinese development path has Chinese characteristics that “to developed as a country and people they have to drink from Chinese traditions in order to tap modernity. Not to just take modernity for its sake which would leave their country at risk of losing their identity through socialisation.

For Uganda and Africa in general, in Chinese development model we have an opportunity to learn from them but we must ask questions like; Yes, we need to be modern but what is it that it speaks to our minds and our hearts in this modernisation? What is in that is Ugandan/African? This way, Uganda and African can study from Chinese model and pick lessons from what can work for Uganda or Africa to develop.

Good enough is that China does not force other countries to take what they do not believe in. At the Embassy’s symposium, ambassador Lizhong explained that “China’s modernisation goes beyond copying others” stressing that “it is an independent path to development. For modernisation, there does not exist a single definitive model. Copying mechanically is not the solution. China’s modernisation is socialist modernisation pursed under the leadership of the CPC. It has broken down the stereotyped thinking of equating to the modernisation with Westernisation, proving irrefutably that developing countries are capable of independently treading the path to modernisation that works.”

Personally, if asked, western or Chinese modernisation? I definitely would say as Africans we can choose to learn from Chinese model and we blend it with African characteristics.

Allawi Ssemanda is a senior research fellow at the Development Watch Centre.

 

The King Fisher Project is a textbook of Example of A Mutually Beneficial Partnership

Posted on By Sino Uganda Research Centre

In 2016, the diplomatic relations between China and Uganda assumed a new mile stone when the two nations agreed to elevate their relations to the level of comprehensive co-operation partnership. This meant new heights of co-operation through harmonizing foreign and domestic policies to achieve social- economic transformation and building a community with a shared future in form of a win-win co-operation strategy as a common goal by both states. Through the king fisher oil project in the Albert region, the government of Uganda, contracted the China National Offshore Oil Corporation (CNOOC) to spearhead the construction of the site and subsequent oil drilling in the area.

The king fisher project is located in Kikuube and Hoima Districts in the valleys of Buhuuka parish along lake Albert. The first challenge CNOOC inherited was the inaccessibility of the Kingfisher area, surrounded by steep mountains and rocks. The only mode of access was by air or sea. Locals navigated the hostile lands by walking long distances of about 3 hours to reach neighbouring villages. However, CNOOC in collaboration with Uganda government helped to construct a standard road through the rocky hills and mountains. This eased access for both company workers and the locals to their respective destinations.

Cross border trade between Uganda and Congo and economic activity within the native local community has also improved since residents can now move to Hoima city more conveniently. The road has also made it possible for cargo to be transported to the landing site designated for neighbouring Congo hence widening Uganda’s exportation capabilities and earning the government revenue. CNOOC directly employs about 280 Ugandans which is about 78 percent of the company’s labour force. Additionally, CNOOC contracts 42 other local contractor companies to handle site development projects which also employ about 1,334 other Ugandans to the project. Ugandan experts and engineers have gained valuable training from CNOOC which is preparing them in the long-term to manage future oil projects.

CNOOC has aided and supported life transforming projects and workshops for the affected communities. These include live stock and crop development program to train famers better farming mechanisms as a surplus to fishing. This has helped alleviate the problems of fish hunting that risk depleting the fish resource. Under the live stock and crop development program, the communities have been enlightened about better ways of farming and a total of 315 affected people engaged in the program. The parish selected 9 farmers that received 9 boram bulls, 10 poultry famer’s groups received 500 chicken each, as well as 9 others that received 5 exotic piglets and boer buck goats. I also learnt that the empowered poultry farmers now supply eggs and chicken to king fishers’ welfare needs department hence earning income that has improved economic status.

CNOOC has also opened up skill workshops to the affected population in Kikuube district. They include Manual skills training fully funded by CNOOC. Many Ugandans have attained welding skills at munteme vocational training Institute and they will be deployed at the construction of the East African crude oil pipeline (EACOP). Others in Hoima city in collaboration with Bunyoro Kingdom have been trained to operate heavy cargo vehicles and a large number have been added to that program and are currently being trained.

The Buhuuka water project scheme was fully funded by CNOOC has transformed the lives of the native affected communities. The water scheme currently supplies local residents with purified and clean water. The water is piped and delivered to the locals. Some of the locals who opted for fully furnished houses instead of cash compensation as resettlement fees, can readily access water through water tanks connected to their houses. The water scheme has alleviated water pollution and its related effects of diseases. Before, the CNOOC led water scheme, the locals were constantly hit by the deadly Bilhazia which seems to have completely been eradicated for now. The community also was availed a health center that extends affordable health services to them. The clean and purified water project is currently being managed by the locals who have been trained by CNOOC engineers on the technicalities of maintaining a complex water scheme.

To conclude, the Kingfisher project run by CNOOC is to a large extent a success story for the collaboration between the Uganda and China peoples. It is a testament to the power of mutual friendship for mutual benefit and underlines China’s commitment to working with developing countries to attain sustainable development and build a community of common prosperity and shared future and prosperity for mankind.

Balongoofu Daniel, Research Fellow Sino-Uganda Research Centre.

 

 

 

 

 

60 years of Diplomatic Relations: Uganda should learn from China’s rapid industrialisation story

Posted on By Sino Uganda Research Centre

Time and again, perhaps more frequently in the last 10 years, the Ugandan President has been on record talking about the need to industrialise or revamp at that, Uganda’s largely agro-based economy. The gospel of industrialisation and manufacturing has been so enthusiastically preached that various industrial parks have sprouted up in various regions in East Africa’s fourth largest state namely Kapeeka, Namanve and Mbale among others, thanks to Chinese heavy investments in these projects. Stories of Chinese industries in Kapeeka industrial park are inspiring. Literally, Chinese investments there have turned the once war war auditorium to flourishing industrial epicenter offering employment opportunities to thousands of Ugandans.

An objective assessment of the performance of these industrial projects illustrates that whereas as commendable achievements have been realised, much is left to be desired. That, exactly is why and where, the ‘banana republic’ can make use of its ally, the Peoples’ Republic of China, in as far as benchmarking some of the ideas that the Asian power house deployed to craft up one of the world’s fastest industrial revolutions, so as to realise her ‘industrial potential’.

Herein then follows a brief illustration of the evolution of China’s industrial revolution with the crux of the discussion being the mechanisms and policies that were employed to achieve that fete and perhaps how an industrialising Uganda may benefit from such. A former ‘agro-nation’ itself, China may effectively provide some practical solutions to Uganda’s ambitious industrialisation campaign.

The timeline of China’s over 40-year-old industrial revolution is indeed wide and requires more than a few worded-essay to extensively discuss however in the interest of being brief but concise, it can be argued that the revolution featured four distinct periods.

The revolution started with the system transition period (1978-1991), the market economy establishment stage (1992-2001), the period between China’s accession to the WTO to the 18th National Congress of the CPC (2001-2012), and the period since the 18th National Congress to date (2012-2020). Throughout the above mentioned stages, China implemented major industrial reforms that can be attributed to its status as the world’s principle industrial powerhouse today.

For purposes of this discussion and logically because Uganda can be argued to be in the early stages of its industrial revolution or revamp, focus will be emphasised on China’s similar system transition period to identify the foundational blocks laid to support the growth of a robust industrial sector, that the ‘pearl of Africa’ may learn from.  According to Wei Jigang, (Director Industrial Economy Research Department of China Development Research Center), the country’s industrial revolution can be originally attributed to the third plenary session held by the 11TH Central Committee of the Chinese Communist Party in 1978 where it was agreed that China enters the reform and opening up era that spurred the industrial revolution process.

The system transition period of the country’s economy was mainly along the lines of developing such policy and reforms that would cure the severe growth imbalance among the various sectors of the economy. There was imbalance amongst the agricultural, light and heavy industry, power industries among others, making operation and development of the national economy impossible. Solutions were required.

Firstly, a planned, coordinated and intentional development of the agriculture, light and heavy industry sectors between 1978-1985 was initiated. It was perhaps observed that excessive prioritisation of one at the expense of others would not serve the economy. The oil, electricity, building materials, transportation industries were strengthened as their progress could easily kickstart development of other industries and resultantly the economy. Government undertook to support the textile industry through raw material sourcing and supply, adequate electricity and fuel supply among others. Government intervention is really crucial.

Comparatively, Uganda in its early industrial development stage, seems to suffer from an imbalance of the economy’s sectors. Uneven and uncoordinated support to some sectors at the expense of others nips the young industries in the bud. Efforts should perhaps be directed at fair and more purposeful allocation of the available resources across the board. Reports of inadequate supply of raw materials at the Soroti Fruit factory is a worrying observation that requires urgent government in survival of established industries if the industrial sector is to survive. In China, efforts were also directed at pushing manufactured products to the international market.

The opening up of the Chinese economy to foreign technology and economic ideas is another mechanism that served its purpose in the in the early stage of the nation’s industrial revolution. If implemented under the principle of equality and mutual benefit, foreign presence in Uganda’s industrial growth can be an invaluable step. In essence, Uganda needs to be wary of the danger of uncoordinated and imbalanced sectoral development if the industrial revolution is to bear fruit. China addressed this well.

A study of the Grant & Thornton Uganda overview of the 2022/23 national budget points to part of the problem. The disparity in allocation of sectoral expenditure resources is evident from the fact that whereas Works and Transport sector was earmarked to receive over Ush 4.3 trillion, their counterparts in the Trade and Industry sector were reportedly allocated a paltry Ush 418 billion. Without downplaying the role adequate infrastructure can play in industrialisation of a country, the imbalance in resource allocation shall result into an imbalance in the growth of the sectors and resultantly, the economy. A more equitable and fair allocation of the available minimal resources across the table would suffice in my opinion.

In addition, it may also be important to note that Jigang unequivocally notes that this first stage of industrial revolution succeeded due to the intentional and dedicated planning and commitment by the implementers of policies. A thorough and serious approach from government on its policies will determine to a large extent, the fate of the sector.

In conclusion, the idea is not to copy and paste China’s policies into the industrialisation process of Uganda as this would be a redundant approach however, there are effective policies and advise that both countries, who share thriving diplomatic relations may cordially exchange to the benefit of the latter.

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

 

 

CNOOC Is Still Uganda’s Reliable Energy Partner Amidst EACOP Controversy

Posted on By Sino Uganda Research Centre

By Moshi Israel.

In International Relations, a country’s political and economic success largely depends on the friends or enemies that country makes. Uganda is no exception to this rule and so far, the Pearl of Africa’s closeness to China is proving to be a wise decision. Time as usual shall be the ultimate judge of this relationship. As President Museveni has occasionally hinted, the oil and gas sector is vital for Uganda’s long-term economic development strategy. The discovery of oil is not an event any country can simply ignore. It represents many opportunities as well as potential dangers. The most significant step is for Uganda to be ready for all these eventualities by making well-meaning strategic partners. China, through China National Offshore Oil Cooperation is likely to be such a partner in the energy sector for Uganda, (CNOOC).

 

Many Ugandans were alarmed and taken aback when the European Parliament passed a resolution on 14th September compelling Uganda and Tanzania alongside their partner TotalEnergies SE, to delay development of the East African Crude Oil Pipeline (EACOP) for at least a year citing human rights and Environment concerns. Whereas human rights and a clean environment must be top priority for every government around the world, the irony in this resolution cannot pass without notice. One needs to only check the list of countries from which the European Union imports its crude oil, solid fossil fuels (coal) and gas to assess the sincerity of the parliament’s resolution. Furthermore, it is important to remember that EACOP represents less than 0.1 percent of the operation global pipeline network of 1.18 million kilometers.

A closer look at the Kingfisher project by CNOOC, shows that Uganda is still on the right path to meeting targets with regards to environmental concerns, human rights through proper compensation and resettlement of persons affected by the oil project. CNOOC holds around 28.33% of the shares in the oil project alongside TotalEnergies SE (56.67%) and UNOC (Uganda National Oil Company), 15%.

In 2025, EACOP is expected to be online and the offloading of the first ship of oil is expected in the same year. CNOOC announced that it would invest USD1.6 billion in the kingfisher project with about $400m going to local providers. The Final Investment Decision (FID) was approved by CNOOC on 4th November, 2021 and on 1st February 2022, Uganda government announced the FDI. The Kingfisher oil field construction kicked off on the 11th of February 2022 and the oil field is expected to be ready for startup by the end of 2024. The main facilities on the kingfisher project are to include; 4 well pads, one Central Processing Facility (CPF), water intake station. Supply base, permanent camp, temporary camp, safety check station, 47.6km feeder line to kabaale including a high voltage cable plus road and other infrastructure.

As a researcher, over the weekend I visited CNOOC’s Kingfisher oil field project and from analytical perspective, CNOOC is doing a commendable job. The project has a plan for impact mitigation activities which involves stakeholder engagement activities. This is important because the plan which is already in practice seeks to quell doubts concerning the project by extending field visits to operation areas by key stakeholder groups such as special interests at all levels from national to the village level.

Additionally, CNOOC has an environment work plan designed to mitigate environmental risks caused by the project. The company completed an Environmental and Social Impact Assessment (ESIA) approval for a High Voltage Test Lab and feeder line ESIA in June, this year. The company also has an ESIA approval for Drilling Buffer Yard as of 14th July 2022. Also, CNOOC completed ESIA for shoreline protection system and jetty structure on 13th, July 2022. In August, the company rolled out the Monitoring and compliance register and a finalized legal compliance MS.

In context of jobs creation, the kingfisher project is currently employing over 2,715 Ugandans, which is over 78% of the total personnel. 280 total workers and 149 Ugandan nationals are directly employed by CNOOC and 2,436 by contractors. 524 of all the employees are from the local communities and there are 42 local subcontractors. These numbers are expected to increase as the project progresses.

CNOOC has also undertaken National Content activities aimed at benefiting Ugandans. These include supplier development engagements, enterprise development training programs that have trained over 150 small enterprises (SMEs) from the Albertine and Kampala regions with an additional 200 SMEs to be trained this year. The project has also implemented a community supplier development program to help farmers and small businesses to supply food and other items to the project. CNOOC has also trained and licensed 140 heavy goods vehicle drivers including a number of women. The project has facilitated training of over 126 trainers under its train the trainer program in Kichwamba and other vocational training institutes. Additionally, 230 welders have been trained and internationally certified in 2G and 6G coded welding.

When one takes a walk-through Kingfisher, it is easy to notice standard houses constructed by CNOOC for the locals who opted for this option instead of taking cash in resettlement money. The resettlement houses are up to standard with a kitchen, latrines and a tank collecting and supplying piped water purified by the company from a nearby stream.

In conclusion, the kingfisher project by CNOOC is a droplet of hope in an ocean of controversies surrounding the oil projects in Uganda. It is evidence that somethings can be done right. CNOOC is largely representative of Uganda’s partnership with China based on mutual respect and benefit for years to come. It is up to the Ugandan people and Government to make the oil project a blessing or a curse for the country. CNOOC is doing its part, it is up to the government of Uganda in collaboration with Ugandans and other stakeholders, to ensure that human rights are respected, the environment is protected and corruption not tolerated so as to alleviate some concerns from the international community.

It is also the responsibility of our international partners to make decisions based on facts and through research before taking a path that would destroy the livelihoods and shatter the dreams of millions of Ugandans, Tanzanians and East Africans likely to benefit directly or indirectly from the oil project.

Moshi Israel is a Senior Research Fellow at Sino-Uganda Research Centre.

 

CNOOC Doing a Commendable Work, EACOP Could be Turning Point to Uganda’s Economy

Posted on By Sino Uganda Research Centre

It is said that Kampala never sleeps, “the party capital of East Africa” any revealers call the city. But walking across the neon lit bar strips of Acacia and upper Kololo or the music blaring Bandali rise one can almost forget that this was unthinkable two decades ago. The neon lights would be flickering due to irregular electricity supply, the sounds of music blaring over the streets would’ve been drowned by coughing generators one spasm away from the dark abyss of load-shedding. Uganda like many other African countries was facing an energy crisis where the industrial and domestic need for electricity far outpaced the ready supply. To address this the government decides to construct the famous Owen Falls Dam at Bujagali.

This project initially funded by the world bank soon quipped the interest of foreign “environmental and climate” activists who pens blazing launched a scathing attack on the project lobbying both local leaders and politicians as well as unleashing a tirade of international pressure forcing the original contractor to (at great cost) pull out of the arrangement. Eventually the Owen Falls Dam was completed at a significantly greater cost to the Ugandan taxpayer and a less favorable Private-Public Partnership agreement than was in place earlier. However, the neon lights on Kanjokya street every night are a reminder that the Bujagali dam project is paying off.

Why do I bring this up now? For over a year now the East African Crude Oil Pipeline has for over a year now been under attack from a similar ilk of foreign “environmental crusaders” who are using all tools at their disposal to stall and stop the project. The latest weapon in their arsenal is a resolution by the European Parliament to compel Uganda, Total Energies and the China National Offshore Oil Company to stall the pipeline project by at least a year as they carry out among other things a secondary impact assessment study.

Besides the fact that it feels quite tone deaf that at a time when the shifting power dynamics within the Commonwealth establishment have reinvigorated the discussion on colonialism and neo-colonialism a group of (largely) former colonial powers comes together to pass resolutions “compelling” African countries to do their bidding, it seems objectively bordering on double standards because the same nations are urging the OPEC organization to increase its gas output to make up for the Russian supply irregularities caused by the conflict in Ukraine. A little closer to home perhaps the European Parliament may be interested in debating the British oil companies fracking within the North East Sea and what impact that could have on the environment as well as Brussels backtracking on coal reduction targets.

Admittedly, there is need for African countries to watch their Carbon footprint especially when it comes to fossil fuels. What many critics decline to mention is that Africa’s contribution as a whole to the global carbon footprint is close to negligible. As International Energy Agency’s executive director Fatih Birol noted; “if we make a list of the top 500 things, we need to do to be in line with our climate targets, what Africa does with its gas does not make that list.” Truly when one looks at the world’s largest emitters of greenhouse gas Uganda and Tanzania are no where close to the biggest threats to the Sustainable Green energy goals.

Most importantly, European countries should pick a leaf from the Chinese development assistance policies which are infrastructure oriented and non interventionist rather than dictating the course of sovereign nations. In a glaring contrast, while European “climate czar” Frans Timmermans and European members of Parliament debate the energy policies of the country the Chinese ambassador to Uganda H.E Zhang Lizhong was over the weekend at the Kingfisher oil field in Western Uganda to oversee the tremendous work of the CNOOC in setting up oil infrastructure that will be used in the project.

In a viral picture he is seen with a Ugandan female oil engineer, Kahwa Lucy formerly on Chinese scholarship now working at the oil site, a diplomacy masterclass revealing China’s commitment to infrastructure capacity building in the country.

During the same tour, the ambassador witnessed arrival of more components of drilling rigs raising hopes that Uganda’s first oil is about to be seen. With CNOOC’s president Chen Zhuobiao, Ambassador Zhang Lizhong assured researchers and journalists who visited the site that all environmental related concerns raised by EU parliament had been addressed since they had been raised in environmental impact assessment studies. The ambassador also noted that it is unacceptable EU to use claims of environment and human rights in to delay important national development project.

In the long run, it is very possible that Uganda’s oil fortunes can be turned around to fuel a greener economy, it has been done before (albeit on a smaller scale) in countries like Egypt and more recently the United Arab Emirates. Currently the logging of forests for firewood and charcoal burning may pose a more immediate threat to the environment than an oil pipeline built to match global standards of environmental sustainability.

Anyway, tonight, because of the dauntless tireless turbines churning noisily in Bujagali, a few million lights are flickering in the entertainment Capital of East Africa, countless beacons of hope in the “dark content”. Perhaps the oil pipeline may just be the artery that pumps life into the Ugandan economy and awakens the “sleeping continent”.

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

60 Years of Diplomacy: Uganda and China Are Comrades

Posted on By Sino Uganda Research Centre

By Alan Collins Mpewo.

After 9 days of Uganda having attained independence from Britain, China and Uganda formalized diplomatic ties on 18’th October, 1962. It’s perhaps one of the first countries to have formally straightened diplomatic relations with Uganda.

This year, 2022, the two countries are celebrating 60 years of diplomatic relations. Last week, the Chinese Embassy of Uganda jointly with Chinese People’s Association for Friendship with Foreign Affairs held a conference on the successes of Uganda and PRC for the 60 years they’ve held diplomatic relations. Importantly, there was endless reassurance of continued diplomacy for the many years ahead. Zhang Lizhong, the Chinese Ambassador to Uganda made highlights to some of the major achievements reached as a result of this diplomatic relations.

Tracking Uganda – China successes, the Chinese Ambassador reminded participants of United Nations General Assembly Resolution 2758 that saws China regain its rightful position in the UN. When it came up to a vote, Uganda was among the many countries that voted in favor – PRC to become to the legitimate representative of China to the United Nations. Since that significant undertaking, the two countries have reached tremendous successes to now recently, and perhaps Uganda’s greatest project with PRC yet, the oil exploration in the Lake Albert Graben. With PRC’s contribution, Uganda is destined to decades of impactful oil export while both countries respectfully benefit from the arrangement.

The Oil exploration being carried out by the Chinese North Offshore Oil Company (CNOOC) has already been steadfast and with much confidence from the two partner states that commercial Oil works will commence by 2025. Besides the estimates of the proceeds that will transform the standard of living of majority of the Ugandans, the job creation that the project has so far created cannot be overemphasized. The jobs are not only limited to technocrats, but also for the informally skilled that provide additional required support and resources mainly in Uganda’s socalled oil districts. CNOOC in the same arena has had contributions on the education in Bunyoro Kingdom.

CNOOC has for over 6 years been providing scholarships to top excelling pupils and students in Primary Leaving Examinations, and Uganda Certificate of Education. Over 200 of the top excelling students benefit annually from this project. As a matter of corporate responsibility, CNOOC has also impacted major health centers area and also constructed modern houses for people affected by oil exploration in the area.

The energy sector does not only however, have impacts felt in the Oil and gas industry. Hydroelectricity, a main propeller of Uganda’s industrialization has seen Chinese input. China funded the Karuma Hydropower Plant that has an electricity generation capacity of 600 MW. Another is Isimba Hydro Power Plant which generates 183MW. When their employment capacity is combined, they employed over 9,000 Ugandans majority of whom were youths.

A significant importance of the increase in the electricity transmission capacities has been the foundation for running numerous industries which are located in the various industrial parks located in Uganda, some of which were built by China such as Uganda-China (Guangdong) Free Zone of International Industrial Cooperation, Kehong Uganda Industrial Park, and Sino-Uganda Industrial Park located in Mbale district. These industrial parks are one stop centers for a number of industries broadly dealing in both simple and complex machinery.

In the highlights from the Chinese Ambassador, another major achievement was underscored as far as countering challenges by both countries in arms. The COVID-19 pandemic brought with it huddles whose effects if not for the intervention of China, would still be ravaging majority of Ugandans. Uganda had reached a hard time getting the COVID-19 vaccines purchased, into Uganda on time since there was much competition from global purchasers for these vaccines as most of developed countries choose vaccine nationalism. The first batch of Sinovac was delivered by China in July, 2021, with 300,000 doses, whereas the second batch was delivered in October, 2021. Alongside the vaccines, emergency medical equipment was delivered along in order to secure protection of the health workers who were tirelessly fighting to save lives in Uganda.

A lot more can be said for China’s contribution in its partnership with Uganda, but so has PRC benefitted. The first of such is the ever-growing market base for Chinese products. Whereas the two countries continue to further deepen their relationships in order to have more market penetration availed for Uganda into PRC, the present revenue attained by PRC from their exports in Uganda is of commanding value. More similarly can be said for the other partnerships that have been formed such as the Oil exploration in Uganda and grant of tenders and contracts to Chinese companies especially in industrialization and construction. A lot can be said equally via agriculture, the road and belt initiative, vocational trainings, education, and many other alike.

The exchange programs on both diplomacy and culture have however been the strongest foundation as the citizens of the two countries keep sharing experiences, lessons, and solutions to present challenges. Some of these are the China-Africa Friendship Association Uganda, Chinese People’s Association for Friendship with Foreign Countries, and the Forum on China–Africa Cooperation.

In 1962 when the relations commenced, neither of the two countries would have believed they’d register their current successes in 2022, at the time of first formalization. It is a precedent set for the future of PRC and Uganda, and a reflection for ways to buttress the relations already existing. It’s therefore a kind hope to the future, that another additional 60 years will be celebrated by Uganda and the People’s Republic of China as the two nations strive to achieve common prosperity by building a common of shared future for mankind.

Alan Collins Mpewo is a layer and Research Fellow, Sino-Uganda Research Centre.

 

Sixty Years of China-Uganda Diplomatic Relations: What Are The Benefits?

Posted on By Sino Uganda Research Centre

China and Uganda have a long diplomatic history. Just days after Uganda gained independence, China recognized Uganda as sovereign nation. Consequently, the two countries’ diplomatic journey started. In 1964, China invited and offered leadership training to several Ugandan youth. In the same year, a Ugandan minister Grace Ibingira was also invited to Beijing to discuss how China would support a newly independent country, Uganda.  This visit was followed by Uganda’s Prime Minister, then Milton Obote who held talks with leadership in Beijing that saw China giving Uganda a grant of $3 Million and $12 million loan to help a newly independent Uganda.

Between 1962 and 1985, bilateral relations between the two nations remained steady despite the regime changes in Uganda. Since then, the government of China has continued to provide developmental assistance to Uganda in form of interest-free loans and grants, technical training to Ugandans, supporting Uganda’s health sector and other vital fields of development. To date, one can argue that this kind of assistance between the two is now a tradition.

In a way of reciprocation, during the 26th General Assembly of the United Nations (UN) in 1971, Uganda voted in favor of the resolution on the restoration of China’s lawful seat in the world body.

Bilateral relations between the two countries entered a new stage of development after the National Resistance Movement came to power in 1986, with bilateral co-operation expanding and mutual high-level exchanges increasing. Since then, China’s contribution toward Uganda’s economic and social development has been on rise.

China’s contribution has mainly been directed towards infrastructural development in form of technical assistance, project aid, and business-related services. The sectors that have benefited from this include; transport, agriculture, manufacturing among others.

Today, China is Uganda’s largest source of Foreign Direct Investment (FDI). China’s investment footprint in Uganda became visible as early as 1991 with mostly small-scale restaurants and health clinics. This has transformed significantly over the years with investment now ranging widely from industries in the manufacturing sector to road construction projects.

In developing countries like Uganda, Foreign Direct Investment is a significant source of private finance, accumulation of physical capital and complementing adequate domestic savings. This is key to Economic Development owing to the low private sector capital and investment capacity in a developing country like Uganda. The entry of such investment has played an important role in improving livelihoods of many Ugandans.

China’s investment in Uganda’s industrial sector is also playing a key role in Uganda’s Economic Development. The introduction of several industrial parks such as in Mbale, Kapeeka, Jinja among others present a sample of China’s contribution. It is also estimated that Uganda’s industrial sector has expanded by over 6.2 percent attributed to construction and agro-processing industries and recovery in the mining and quarrying sub-sectors, a role that can be attributed to astute setting up of industries in Uganda by China and its nationals.

China’s contribution to infrastructural development particularly in the areas of transport, energy and Information technology has also facilitated economic development. In transport sector, with funding from Chinese government, Uganda has been able to construct several roads and other important infrastructural projects. For example, the Kampala-Entebbe expressway and Entebbe international airport were constructed with funds from China. Infrastructural development is a major catalyst for economic development.

Furthermore, trade between Uganda and China has also soared which has directly facilitated the economic development of the country. Trade in the form of imports from China widens the tax base of Uganda’s government and is later important in improving the physical quality of life of Ugandans. With further growth in Uganda’s industrial sector bred by China and abilities to trade in finished goods, the market of China also presents opportunities to Uganda and its nationals to achieve even more economic development.

China’s funding of projects in Uganda’s energy sector has addressed the issue of power shortage and high tariffs that initially affected Uganda’s potential and in turn boosted economic development. Key among these Chinese funded projects are the 600 MW Karuma Hydropower plant constructed along the River Nile in Northern Uganda and Isimba hydropower dams. Prior to this ambitious funding, Uganda faced a power crisis whose peak was in 2014 leading the government to resort to using diesel generators to power the country’s economy which raised the cost of power. High cost of power led to increase of prices of commodities which later affected the industrial growth and people in equal measure. Therefore, projects like Karuma and Isimba hydropower dams have been important because industrialization which is earmarked to ensure continued economic development thrives in increased electricity capacities.

It is also important to note that the provision of loans to Uganda to enhance her development is also a way China has contributed to Uganda’s economic development. Although it is often argued that debt cripples an economy, where handled rightly, visible achievements of loans can be enjoyed by a country. Uganda’s relationship with China has facilitated occasional facilities extended through China herself or her financial institutions. A case in point where economic development can be said to have been influenced through loans is a 482.5 million US dollars Isimba Hydroelectricity Power Station project.  The project is now complete thanks to loan from the Export-Import Bank of China which will be repaid over a period of twenty years at a two percent annual interest with a five-year grace period.

It is without a doubt therefore that good diplomatic relations between China and Uganda have not gone to waste. In terms of economic development, Uganda has gained in all aspects. Despite areas that need improvement, the relations between China and Uganda will continue to bear not only economic but also social transformation of Uganda.

Katende Arnold Ricky is a junior research Fellow at Development Watch Centre.