China has solidified its position as one of Uganda’s top foreign investors, injecting over $800 million (approximately Sh2.96 trillion) into the economy by the end of 2024.
This influx of capital has significantly boosted key sectors, including agro-industry, manufacturing, ICT, oil and gas, green energy, and industrial parks, creating thousands of jobs for Ugandans.
Chinese Ambassador to Uganda, Zhang Lizhong, highlighted these milestones during a recent press briefing at the CNOOC Kingfisher oil field camp. He emphasized that China-Uganda relations, under the leadership of President Xi Jinping and President Yoweri Kaguta Museveni, have reached an all-time high, characterized by enhanced political trust, increased high-level exchanges, and tangible economic cooperation.
Strengthening bilateral relations through FOCAC
Uganda’s participation in the Forum on China-Africa Cooperation (FOCAC) Summit held in Beijing last September, led by Vice President Jessica Alupo, marked a significant turning point. The summit led to the elevation of China-Uganda relations to a strategic level and laid the groundwork for implementing key cooperation initiatives.
According to Ambassador Lizhong, China has committed to ten partnership actions aimed at fostering Africa’s modernization. These include accelerating industrialization, enhancing agricultural modernization, implementing zero-tariff treatment for African exports, promoting digital and green industries, and supporting 1,000 small and medium livelihood projects across the continent.
While only six months have passed since the summit, Uganda and China have already begun implementing some early-stage agreements. Among them is the full enactment of zero-tariff treatment for certain Ugandan exports. China and Uganda have also signed trade protocols allowing for the export of dried chilies and fish products, with fish maws already making their way to the Chinese market.
China’s economic and humanitarian support
China has also been proactive in providing food aid to Uganda. In response to a request from the Office of the Prime Minister, Beijing has donated 1,610 metric tons of food, with 1,000 metric tons already delivered and the remainder expected in Kampala soon. This aid aims to alleviate food insecurity in Karamoja and other vulnerable districts.
Additionally, China has pledged to renew and upgrade the China-Uganda Friendship Hospital in Naguru. Plans are in motion to enhance medical infrastructure, increase the number of hospital beds, and improve healthcare services. This investment underscores China’s commitment to strengthening Uganda’s health sector.
Another key aspect of China-Uganda cooperation is the development of a bamboo plantation and utilization project. Chinese experts are set to arrive in Uganda to help establish a demonstration site for bamboo cultivation and production. In preparation for this, a short-term training program on charcoal production will take place in Kampala within the next ten days.
In the realm of skills development, China continues to support Uganda through capacity-building initiatives. In 2024, around 600 Ugandans benefited from short-term training courses in China, covering fields such as agriculture, industrialization, and ICT. This number is expected to increase to 700 in 2025, ensuring more Ugandans gain valuable expertise that can contribute to national development.
China has actively supported Uganda’s health sector, with last year’s donation of 500,000 packs of anti-malaria drugs valued at $1.1 million. The initiative aligns with Uganda’s Malaria Elimination Demonstration Zones project, which China has committed to further supporting through additional medication supplies in the coming years.
Ambassador Lizhong commended Uganda for successfully hosting the South-to-South Summit and the Group 77+China Summit in 2023, which further cemented its role as a key player in the Global South. Uganda has also joined BRICS as a partner state, positioning itself within a powerful bloc that is shaping global economic dynamics.
China views BRICS as a critical engine for Global South cooperation and economic growth. Ambassador Lizhong reiterated that China is eager to enhance its partnership with Uganda within this framework, fostering closer collaboration in international affairs and economic initiatives.
Future Outlook: strengthening ties for mutual growth
Looking ahead, China and Uganda’s bilateral relations are expected to deepen, driven by continuous economic and diplomatic engagements. As both nations work towards fulfilling the commitments set forth during the FOCAC Summit, Uganda stands to benefit from increased trade, infrastructure development, and knowledge transfer.
With sustained investment and strategic partnerships, Uganda’s economic landscape is set for significant transformation, positioning it as a key beneficiary of China’s broader vision for Africa’s development.
The strengthening of China-Uganda ties is not only fostering economic growth but also enhancing Uganda’s global standing, promising a future of shared prosperity and deeper diplomatic collaboration. See more.