Kampala— Uganda has secured a major financial boost after signing a Shs 101.3 billion (approx. $27 million) grant agreement with China, reinforcing economic and technical cooperation between the two nations.
The deal, inked by Finance Minister Matia Kasaija and Chinese Ambassador Zhang Lizhong, will fund critical projects aligned with Uganda’s National Development Plan III and the UN Sustainable Development Goals (SDGs).
A Lifeline for Infrastructure, Energy, and Health
Minister Kasaija hailed China’s long-standing support, citing past investments in transport, energy, and healthcare.
“We deeply appreciate China’s unwavering partnership,” Kasaija said. “This grant will accelerate priority areas like agro-industrialization, solar-powered irrigation, and mineral beneficiation.”
The funding stems from commitments made at the 2024 Forum on China-Africa Cooperation (FOCAC), where Beijing pledged to elevate ties with Kampala to a “comprehensive strategic partnership.”
Key Projects in the Pipeline
Ambassador Zhang revealed that both governments have identified joint ventures to implement 10 key partnership actions over the next three years, including:
- Agriculture & Food Security: Uganda’s first-ever fish maw exports to China and a new bamboo plantation initiative.
- Health: Continued Chinese backing for Uganda’s malaria elimination program.
- Technology: Enhanced skills transfer and industrialization support.
Why This Matters
- Economic Growth: The grant could spur job creation and infrastructure upgrades.
- Deeper China-Uganda Ties: Strengthens Beijing’s influence in East Africa amid Western competition.
- Local Impact: Farmers and manufacturers stand to gain from agro-industrial investments.
What’s Next?
With funds now secured, focus shifts to project execution—and whether Uganda can maximize this opportunity amid past concerns over debt sustainability and corruption risks.
