Many of us may not know, but apparently, apart from the British colonialists, China is recognized for being the first other foreign country to open an embassy in Uganda after Uganda attained independence in 1962.
Even though the Chinese did not make as much noise compared to their western world counterparts, bilateral relations between the two countries remained steady in spite of the regime changes in Uganda.
However, over the last 20 years, Chinese influence and presence in Uganda is beginning to be felt across the board, especially trade, infrastructure development and ICT.
According to available statistics from Uganda Investment Authority, the total amount of China’s investment in Uganda reached US$596m, with about 265 Chinese companies opening their business in Uganda, creating some 28,000 job opportunities for the local people .
According to the Vice Chairman of the Chinese Business Community in Uganda Mr.Jeff Lin, the Chinese population in Uganda today stands at 4,000 strong and growing with projections of reaching 5,000 by end of 2013. The Uganda Chinese business association so far has 700-1000 members and growing. This number is not a tourist number but investors in different sectors of the economy.
Building Wealth; Five Ugandan Entrepreneurs Democratizing Access to Investments.The Chinese have invested in all sectors of the economy from Construction to farming with the latest being a Rice farm in Kapeka, Nakaseke county where rice is grown for export. Along the Mukono – Jinja road where most of the Chinese Companies are located, their investments range from tile and brick making, steel and foam making , paper and books, plastic shoes and soon a car tire making plant will be opening at Mbalala in Mukono district.
Other investments include poultry rearing for export and value addition to agricultural produce not to mention the hospitality industry, where they have invested in as well. Many Chinese are also into wholesale and retail trading and have a very big presence in shops in downtown Kampala.
Trade boom
According to figures from Bank of Uganda, by the end of 2012, amount of bilateral trade between the two countries, stood at US$576 million. Even though the equation is in favour of the heavily industrialized China, it is important to note that from 1999 to 2012, exports to China have grown by over 2800 percent from virtually nothing to now over US$30 million. In the same period, imports from China have grown by 1302 percent from US$38.92 million to US$546 million, making China Uganda’s second biggest source of goods, after India.
In the first 2 quarters of 2013, Uganda imported goods worth US$248.2 million from china, while China imported goods worth US$13.7 million, all in all an indicator that the economic trend between these 2 countries is growing. According to Issa Ssekito, the Kampala City Traders Association (KACITA) spokesperson, “more and more Ugandan traders are going to China than anywhere else. Up to 85% of goods on the Ugandan market are all Chinese originating and we have gone beyond the point of no return.
