Uganda president Yoweri Museveni in China for FOCAC Summit: COURTESY PHOTO

With a wave of Imperialistic tendencies sweeping the world with what has been termed as China’s “debt traps”, how safe is Uganda.

29% of Uganda’s total loans is owed to China’s EXIM Bank.

China- Uganda loans 

Loan agreement performance data (2016) indicate that China committed $350m for Entebbe-Kampala Expressway, $100m to improve road networks, $483m for Isimba hydropower plant and $1.4b for Karuma Dam and many others in the year 2016.

China alone has a loan commitment totaling to $2,588,078,279.  Over, the last four years, Uganda has seen an increasing share of Chinese loans in roads and energy projects in excess of $3b.

Uganda’s debt to Uganda exceeds 10% of Uganda’s current GDP at $27.53b (World Bank, 2015).

The China ‘debt trap’ genesis 

In the past two years, China has been taking over territories of her ‘bad debtors’ who owed China alot of money and failed to pay.

The very first country to fall prey to Chinese ‘debt trap’ was Syri-lanka. Officially known as the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia, located in the Indian Ocean.

In December 2017, Sri-Lanka handed over Hambantota port to China on a century-long lease over failure to pay. The port was built with $1.3bn loan from China  at 6.3% interest. However, it failed to fully pay the loan. This year, the country owes nearly $13 billion, out of a forecast revenue of less than $14 billion. We don’t know what next China will take in case of failure to pay.

Zambia did not skip the trap, talks are underway for China to take over Zambia’s state power company Zesco after the country defaulted on loan payments, a report by Africa Confidential claimed.

Djibouti, home to the US military’s main base in Africa, looks about to give away the control of key port to a Beijing-linked company

Uganda’s stake

An analysis by Quartz on the 8 most vulnerable countries on China debt overload puts Djibouti first, followed by Tajikistan.

Although Uganda is not enlisted among the most countries in danger of the china’s Road and Belt initiative, it should not settle in a comfort zone.

Most of the loans that Uganda procured from China are to be repaid within an average period of 10 years.

However, the loans were used for long term assets which may not yield returns in the long run.

China’s plan

Beijing’s multibillion dollar Belt and Road Initiative (BRI) has been called a Chinese Marshall Plan, a state-backed campaign for global dominance, a stimulus package for a slowing economy, and a massive marketing campaign (The guardian)

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In a meeting that opened on Wednesday at the Speke Resort Munyonyo was expected to review several immigration policies concerning the movement and administration of citizens in the seven member states.

The meeting attracted seven ministers from seven IGAD member states which include; Somalia, Djibouti, South Sudan, Ethiopia, Kenya and Uganda.

Caroline Njuki, the Senior Programme Coordinator at Regional Secretariat of IGAD.

Caroline Njuki, the Senior Programme Coordinator at Regional Secretariat of IGAD on forced and mixed migration says the ministerial meeting on migration will see the launch of the ministerial committee on immigration.

Njuki says the ministers will also find ways of handling the considerate cases of migration which include the positive and the negative effects to the region.

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Opening the 9th Executive Council Meeting of the Inter-Parliamentary Union – (IPU-IGAD), Speaker Kadaga said that her colleagues also have to think about using their traditional tools of legislation, oversight and representation to champion the interests of the people.

“We are meeting at a time when South Sudan and Somalia still don’t have peace and security; when climate change is devastating our region; when many women and girls in our region are still subjected to cruel, inhuman, degrading treatment and torture under the name of cultural values,” she said.

The 9th Executive Council Meeting is being held at Century Hotel in Kamuli, 18 – 19 September 2016. Delegations from South Sudan, Somalia, Ethiopia, Kenya, Djibouti, Sudan and Uganda are attending the Meeting.

The objectives of IPU-IGAD include promoting unity and strengthening ties of cooperation among member states; promoting peace, security and stability within the sub-region and promoting good governance, transparency and rule of law within member states.

“IPU-IGAD possesses the potent, at least from its objectives, to address some of the challenges faced in our region. Let us make it work for the common person in the region, the voiceless, the marginalized, disadvantaged and oppressed,” said Kadaga.

The Meeting is being held in Kamuli to give chance to visitors to see and experience Uganda’s countryside and how local people live and cope with development challenges.

“We wanted you to see the roads, dwellings, gardens, markets, hospitals, our rural people and their hospitality,” said Kadaga.

The Secretary General of the IPU-IGAD Member States, Amb. Mohamed Adam said the Meeting was testimony of countries’ commitment to the grand goals and visions.

“These visions are embodied in economic development, political and social integration. The aspirations of the people of this region can be achieved since they have more in common than the Europeans who achieved the European Union,” said Amb. Mohamed Adam.
He said that there was need to work together to achieve peace in the region so as to combat poverty, environmental degradation, migrations, human trafficking and drugs.

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