For how long will Uganda borrow from China?
HAKIIM WAMPAMBA
Debt experts have questioned whether Uganda will be able to pay off its debts owed to China which stand at a whooping $3.1 billion.
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The concern comes amidst reports that some of the infrastructure projects funded with loans from China could be taken over by Beijing in case Uganda fails to meet its debt obligations.
Christine Niyigiye - programmes manager, Policy Analysis and Governance at Uganda Debt Network (UDN), said a reasonable degree of skill and care ought to be exercised in the loan acquisition process.
As of June 2021 Uganda’s total debt stood at $ 19 billion ( approximately Shs 71 trillion).
Out of this, $ 3.1 billion alone is owed to China according to the China Africa Research Initiative. This amount has been committed in 17 loan projects across the spectrum of transport amounting to $ 644 million, ICT $ 110 million , Education at $ 85 million, Food at $ 40 million while $ 26 million is still unallocated.
Gen Katumba Wamala, the minister of Works and Transport said Uganda will meet its part of the bargain.
China insists that it comes to the loan negotiation table with clean hands.
