Inside Uganda-China trade as figures hit record USD 1 billion

KAMPALA – Bilateral trade volume between Uganda and China has increased by 16.1%, hitting a record USD 1.1 billion within the last 12 months, the Chinese government has said. Mr. Zhang Lizhong, the Chinese Ambassador to Uganda revealed the bilateral trade increased to 1.1 billion US dollars, up from 800 million US dollars in 2017. Mr. Zhang attributed the swelling trade volumes between both countries to the peace and stability that the country has experienced for a long time. “China and Uganda have witnessed an increase in trade volume for six consecutive years. According to the latest statistics from January to October last year, the total volume of bilateral trade increased by 16.1% to 1.1 billion US dollars of which Uganda’s exports to China have also increased by 25%,” Zhang said. He made the remarks while addressing the Chinese investors in Uganda at the launch of the Uganda taxation handbook for the Chinese business community in Uganda. He asked the government to protect the Chinese investors from un-scrumptious people who extort money from the investors. Uganda’s Minister for Trade, Industry and Cooperatives Francis Mwebesa, while speaking at the public unveiling of the Special Preferential Tariff Treatment of Ugandan Exports to China held in Kampala last year, urged the business community to take advantage of the Chinese market access. “To export to China, it is the best market we can access, the private sector especially those in coffee should access the Chinese market,” Mwebesa said. China has since 2010 been increasing the number of Ugandan goods that can access its market tariff-free. According to Uganda’s Ministry of Trade, Industry and Cooperative, China in 2013 increased the zero tariff line to 95 percent from 60 percent in 2010. In 2015, the zero tariff line was further increased to 97 percent. The trade volume between the two countries in 2021 amounted to 1.07 billion dollars, registering a 28.5 percent increase, against the shock waves of the COVID-19 pandemic. By the end of 2020, China’s direct investment in Uganda reached 710 million dollars and the investment is mainly focused on manufacturing, agriculture, mining, and logistics. Last year, China and Uganda also commemorated their 60th anniversary since the establishment of diplomatic ties. At a webinar held organized by the Chinese People’s Association for Friendship with Foreign Countries (CPAFFC), the Chinese Embassy in Uganda, and the Ugandan Embassy in China, speakers on both sides hailed the bilateral ties on international affairs. Vice President of CPAFFC Jiang Jiang said China supported African countries to fight imperialism and colonialism. Africa also supported China’s restoration of the lawful seat at the United Nations in 1971, signaling deep ties between the two sides. “African brothers have withstood tremendous pressure, carried China to the United Nations, and always firmly supported China in safeguarding its legitimate rights and interests and core interests on international occasions,” Jiang said. Uganda’s Ambassador to China Oliver Wonekha said China has been playing a central role in building transport and energy infrastructure in Uganda. China is financing the expansion of the country’s Entebbe International Airport, the main gateway to the world. China also financed the construction of the Kampala-Entebbe expressway linking the national capital of Kampala to the airport. In the energy sector, China financed the construction of the Karuma Hydro Power Plant and Isimba Hydro Power Plant which helped address Uganda’s energy deficit, a major bottleneck to the country’s development, the ambassador said. A report issued this month titled “Chinese Enterprises Social Responsibility Report 2022” showed that Chinese enterprises in Uganda are deepening the people-to-people ties between local and Chinese communities through their corporate social responsibility work. The report, which sampled 21 out of 129 member enterprises of the Chinese Chamber of Commerce in Uganda, showed that the enterprises have supported local communities by providing medical camps, scholarships, knowledge and skills training, and renovation of schools, among others.