China Warns Uganda on Western Aid
The Chairman of the Export-Import Bank of China, Li- Ruogu has
cautioned Uganda and other African countries to be more critical of
the aid some donors are willing to extend to their countries.
The high ranking Chinese official, who is currently in the country to
discuss with Government financing modalities for Karuma and Isimba
hydropower dams among other projects,
said African governments should be ready to ignore aid if it does not
lead to development because many donors still don't understand the
situation in Africa and continue to issue aid conditions which are out
of date.
The China Exim Bank President who was accompanied by a 16 -man
delegation made the remarks this week while meeting Prime Minister
Amama Mbabazi at his Office in Kampala.
"Listen to donors carefully to ensure that you benefit from aid,"
Ruogu said, adding that China's policy is not to teach Africa what to
do but to share China's experience and leave decision making to the
respective countries.
The remarks come at a time when President Museveni is looking East for
military logistics; heavy financing for government projects and
business relations.
Western donors recently suspended aid to Uganda over the
anti-homosexuality Bill.
Ruogu said the Chinese people will never forget the support of Africa
during their liberation struggle.
The Bank President said their policy on cooperation emphasises
development projects support as opposed to budget subsidies.
Infrastructure
"Infrastructure is important for a country's development, so we invest
heavily in this sector because transportation and energy are key to
economic activity," Ruogu said adding that their objective is to leave
a legacy with tangible and concrete projects for the beneficiaries.
He also called upon Uganda to use her potential to develop its economy
like Angola and also ensure that the agricultural sector is well
developed to ensure sustainable development.
Ruogu on a four day visit said effectiveness and discipline in the use
the available resources whether borrowed or locally generated is key
to increased growth and development.
Mbabazi in his remarks said Uganda is happy to learn from the China
model of development.
He said support from China since the liberation struggle has enabled
Uganda to build the capacity to defend itself and embark on
development.
"A people who cannot defend themselves can't be free. China helped us
to build the capacity to defend ourselves," Mbabazi said.
Mbabazi said Uganda is ready to use the oil resource strategically to
build infrastructure such as the standard gauge railway line
connecting the East African countries.
"We hope to raise our national power grid from about 900MW to 3,885MW
in the period of 5-7 years," Mbabazi said adding that Uganda has a lot
of resources to exploit including the second largest phosphate deposit
in the world.
The China Exim Bank President is expected to inspect progress made on
the construction of the $350 million, Entebbe express highway financed
by the Bank.
The Export Import Bank of China founded in 1994 is a State Bank solely
owned by the Chinese Government.
The meeting was also attended by the Minister of State for Finance,
Fred Omach, Minister of State for Industry, James Mutende, Minister of
State for International Affairs, Okello Oryem and the Permanent
Secretary Office of the Prime Minister, Christine Guwatudde Kintu.
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