News / Africa

Uganda Awards Another Dam Project to Chinese Company

China's influence in Uganda is growing, with two dam contracts recently awarded to Chinese companies, offers of cheap credit and even a possible deal to buy the debts of Ugandan MPs. But some rights groups worry that it could come at the expense of the country’s independence.
 
The Ugandan government, lured by the promise of cheap credit and heavy investment, is turning more and more toward China.
 
Chinese firms have been pouring into the country. According to the Chinese Embassy here, 45 new companies set up shop in Uganda just last year. And state-owned Chinese companies were recently awarded contracts to build Uganda’s two newest hydroelectric dams. The largest is estimated to cost almost one and a half billion dollars.
 
Chinese investment has been creating jobs in Uganda, and the new dams should help the country meet the energy demands of its fast-growing population, says Minister of State for Energy Simon D’Ujanga. Plus, he adds, cheap loans sweeten the deal.
 
“We have a bilateral arrangement with the Chinese government for cheap capital. It is a concession which is at a very low rate, and therefore we take advantage of that,” said D’Ujanga.
 
D’Ujanga acknowledges that low interest rates are not the only thing that makes China an attractive business partner.  “If anything, the Chinese government is more liberal than the other lenders. When they come, we discuss strictly business, and that’s all. They don’t start asking many questions which are not related to the business,” D’Ujanga noted.
 
The questions China does not ask are about governance and human rights. Godber Tumushabe is director of the Kampala-based Advocates Coalition for Development and Environment. He said this no-strings-attached approach is one of the main reasons why many African leaders are seeking Chinese investment.
 
“They don’t want to be held accountable to any standard in terms of good governance, in terms of human rights, in terms of even economic governance. Because some of these regimes, they are patronage regimes, they are client regimes, and therefore they don’t want to be held to any standard that Western countries normally would demand,” Tumushabe said.
 
China’s involvement with the Ugandan government has recently taken a more personal turn. Last week, lawmakers said that a Chinese firm is negotiating a deal to buy off the debts of Ugandan parliamentarians.
 
Tumushabe explains that many Ugandan lawmakers overspend during their campaigns, and end up in debt to other politicians. If the Chinese deal goes through, he said, it would compromise them even further.
 
“It’s really more or less like selling away the other aspect of your independence. All of a sudden, you have to probably look favorably on some of the transactions that China is doing here.”
 
According to reports in the local media, Ugandan President Yoweri Museveni opposes the deal. Tumushabe said it is the country’s very sovereignty that is at stake. “I don’t think that a state that claims to be sovereign, like all these African states normally want to claim, should be in the business of allowing another state to come and pay off the debts of your elected leaders. I think that’s a responsibility that the state should have to its citizens," said Tumushabe. "To make sure that the elected leaders do not mortgage themselves to another country.”
 
But, he adds, Uganda’s behavior is not unusual. Governments across the continent have been turning to China to avoid having to make the changes that a growing middle class demands, he said.
 
“The presence of China gives a lease on life for regimes across the world, and more specifically in Africa - regimes that are not yet ready to reform, both in terms of economic reforms but also in terms of governance reforms,” said Tumushabe.
 
D’Ujanga insists that the Ugandan government knows what it is doing when it comes to China, and is not sacrificing its independence. “Not at all. This is not the first time we are dealing with the Chinese people. We have dealt with them before, and we can predict them,” he stated.
 
But Tumushabe warns that too few politicians weigh the real costs of cheap Chinese credit. When it comes to international relations, he says, there is no such thing as a blank check.

You May Like

India PM Modi's party distances itself from religious conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote a Hindu-dominant agenda by luring Muslims and Christians to convert to Hinduism More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid