China and Uganda sign a 101.3 billion grant
Over the years the Government of the People’s Republic of China has continued to develop a strong relationship with the Ugandan government. In the most recent development, Uganda’s Finance Minister, Matia Kasaija, and the Chinese Ambassador to Uganda, H.E. Zhang Lizhong, signed a grant agreement worth approximately Shs. 101.3 billion
This grant will help build a more buoyant economy with funds expected to facilitate initiatives in key economic sectors, fostering long-term growth and development.
Speaking at the signing of the agreement held in the country’s capital Kampala, Minister Kasaija expressed unreserved gratitude to the Chinese government for what he termed as “its sustained financial and technical assistance in various sectors, including transport, energy, and health.”
“On behalf of the Government of the Republic of Uganda, I want to extend heartfelt gratitude to the Government of the People’s Republic of China for the long-lasting technical and financial support in various sectors ranging from transport, energy, and health, among others,” said Kasaija.
The Chinese ambassador Zhang revealed that Uganda’s Ministry of Finance, Planning, and Economic Development (MoFPED) and the Chinese Embassy have already identified projects to jointly implement over the next three years under the 10 partnership actions framework.
Ambassador Zhang Lizhong highlighted that the economic and technical agreement stemmed from discussions held during the 2024 Forum on China-Africa Cooperation (FOCAC).
During the summit, China pledged to elevate its relationship with Uganda to a Comprehensive Strategic Cooperation Partnership.
These initiatives are expected to drive Uganda’s economic growth and development. In 2023, China’s exports to Uganda were valued at $1.24 billion. This is according to the United Nations COMTRADE database on international trade. Uganda also exporting goods worth $88.27 million to China between February 2024 and January 2025
At the same event, ambassador Zhang also announced that the bamboo plantation and utilization industry had reached the implementation stage, a significant step towards diversifying Uganda’s agricultural exports.
In the same vein, malaria elimination efforts also got a huge boost as the Ambassador reiterated China’s commitment to supporting Uganda’s health sector. He stated that China would continue its assistance in this area throughout the year, reinforcing the long-standing cooperation between the two nations.
This announcement comes as Uganda gears up towards addition of the malaria vaccine in Uganda’s immunization schedule. World Health Organization (WHO) places Uganda 3rd on Malaria cases globally.
On trade relations, China is a veritable source of investments in Uganda, as more companies from China are setting up base, with a number of products on the Uganda shelves ranging from electronics, ceramics and industrial machines. Many industrial parks have sprung up in areas like Mbale, Kapeka, with many more factories along the Kampala Jinja highway. In Moroto and Buikwe a Chinese Company West International Holdings (WIH) is constructing what will be East Africa’s largest cement factory. China is also handling large scale infrastructure projects in the country that include the construction of the 600MW Karuma and Isimba Hydropower Project.
All these go a long way in addressing the country’s infrastructure deficit. By 2016 Uganda Investment Authority had estimated that the total number of Ugandan employees working for Chinese companies in Uganda was more than 44,000. The number has drastically increased over the years with increased investment by the Chinese companies.
China has shown its readiness and willingness to invest in many African Countries without interfering in the internal politics.
Many high-level visits and exchanges between China and Uganda paved way for way deeper consultation towards a more effective development partnership as this new move takes shape and adds a brick to the Uganda China relations.
