Uganda and the People's Republic of China have maintained strong economic and diplomatic relations since Uganda's independence in October 1962. China was one of the first nations to recognize the newly independent nation. Following Yoweri Museveni's rise to power in 1986, the two nations have developed closer ties. He has made multiple visits to China, including in March 2015 to attend the Boao Forum for Asia Annual Conference, the Forum on China-Africa Cooperation (FOCAC) Beijing Summit in September 2018, and in June 2019 for a working visit.
In recent years, China’s involvement in infrastructure development across the globe has captured the attention of international observers. China has been a significant contributor to numerous infrastructure projects in Uganda. These developments, while promising economic growth and connectivity, have also raised questions about the long-term implications for local economies and the national sovereignty of both countries. Let's delve into the multifaceted aspects of China's growing influence in Uganda.
Trade between the two nations totaled over $1 billion in 2017, and $1.46 billion in 2024. Additionally, Chinese companies have contributed significantly to the building of infrastructure in Uganda.
The two countries have also signed multiple cultural cooperation agreements since Museveni's rise, exchanging student and medical teams. For example, the Ministry of Foreign Affairs of China claims that since 1983 China has dispatched 23 medical teams, which total 218 medical personnel to Uganda. Additionally, between 2007 and 2009 China donated anti-malaria medicine worth $500,000 per year.
Relationships between the two nations have been strengthened by a policy of non-interference in political affairs. Following the passage of the Uganda Anti-Homosexuality Act, 2014, Western criticism of the Ugandan government and Museveni's presidency increased. Many nations withdrew economic aid and support.
Read also: Friendship Hospital in Uganda
China and Uganda have a robust trade relationship. China's largest exports to Uganda are machinery and electrical equipment. Uganda's major exports to China include many raw goods such as hides, oils, and seeds. Trade between the two countries also significantly increased under Yoweri Museveni's presidency. Additionally, Uganda has emerged as a potential market for many Chinese businesses, both state-owned and private.
These businesses include oil and construction, as well as smaller stores and factories for electronics, clothes, and other consumer goods. For instance, Chinese construction companies have won contracts for projects such as the Mandela National Stadium and the country's largest hydroelectric dam at Karuma Falls.
China has been heavily involved in the funding of road infrastructure in recent years with approximately 30,000 km of highways being estimated to have been built or upgraded by Chinese companies by 2018. By the end of 2018, 37 road upgrading or rehabilitation projects were in the process of development with Chinese companies facilitating 27 of them. More recently, Chinese companies have been directing the construction of an express highway connecting the major city of Entebbe to the capital, Kampala.
The Chinese-built Isimba hydropower project on the Victoria Nile in Kayunga, Uganda, was inaugurated on March 21, 2019. The power plant is intended to address a power shortage facing the country. The project had hired more than 3,000 workers, of whom 85 percent were Ugandans.
Ugandan President Yoweri Museveni was inspecting the construction work of the country's largest hydropower plant, the Karuma Power Plant in the midwestern district of Kiryandongo on Aug. 23, 2018. Uganda contributed 15 percent of funding while the China Export and Import Bank provided up to 85 percent of financing for the project. The total cost is 1.4 billion dollars for the plant.
Read also: Opportunities in Ghana
One of the most prominent projects is the Standard Gauge Railway (SGR), connecting the port city of Mombasa to Nairobi and beyond. Completed in 2017, this railway has significantly enhanced cargo transportation efficiency, reducing travel time and costs. Beyond railways, Chinese investments have extended to roads, energy, and telecommunication projects in Kenya. The Nairobi Expressway, a major highway project, aims to further reduce transportation time between the Jomo Kenyatta International Airport and the capital.
The Entebbe-Kampala Expressway, funded by China Exim Bank, has significantly improved the connectivity between the capital city and its international airport. Hydropower development is another area where Chinese investment has left its mark in Uganda. The Isimba and Karuma hydropower projects, largely funded by Chinese loans and constructed by Chinese companies, aim to address the country’s energy deficit and stimulate economic growth.
The influx of Chinese investments in infrastructure across East Africa has undoubtedly brought about tangible benefits. Enhanced transportation networks reduce trade costs, stimulate economic activity, and attract foreign investment.
The report also showed that domestic planned investment is on the increase contributing to 24.4 percent of the total investment. The sectors that attracted the highest investment in the planned licensed projects during the period under review were manufacturing with 148 projects, agriculture with 51 projects, and transport, storage, communications, construction had 17 licensed project, among others.
China tops the list of major foreign investors in Uganda, according to the East African nation's investment authority.
Read also: Ghana-China Ties
China - Uganda relations: Government lays out key priorities
China is involved in a wide range of economic and political activities in Uganda. These include infrastructural development, educational training, trade relations and manufacturing. Agreements between the two nations have facilitated Chinese investment in Uganda. These agreements cover various sectors including ICT infrastructure programs, construction, energy, agriculture, mining and technology.
Another major area of China-Ugandan engagement is through education. The Confucius Institute at Makerere University is a Chinese government- backed program. It serves the wider Kampala community. Additionally, there is a private school in Kampala, Luyanzi College Bweyogerere, which offers Chinese language instruction. This is part of a long standing tradition of the People’s Republic of China (PRC) investing in education in Uganda that goes as far back as the 80s.
Moreover, the Chinese business community in the country has heavily invested in education of Ugandans too. As recent as May this year, the China National Offshore Oil Corporation awarded scholarships to three hundred students in the districts of Hoima and Kikuube at the levels of Primary school, Secondary school, and University in continuation of a corporate social responsibility campaign that it has carried out for more than a decade.
These scholarships are an annual programme courtesy of the China Scholarship Council targeted at students who hail from countries other than China (of which Uganda is among) wishing to study at any of the two hundred seventy partner universities. Attaining this opportunity is very prestigious as it comes with a coverage of all tuition, a monthly stipend, plus plane tickets to China as well as for the return journey upon completion of one’s degree.
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. 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. China views BRICS as a critical engine for Global South cooperation and economic growth. Looking ahead, China and Uganda’s bilateral relations are expected to deepen, driven by continuous economic and diplomatic engagements.
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. In 2024, around 600 Ugandans benefited from short-term training courses in China, covering fields such as agriculture, industrialization, and ICT.
Among them is the full enactment of zero-tariff treatment for certain Ugandan exports. 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. 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.
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.
Chinese Ambassador to Uganda, Zhang Lizhong, highlighted these milestones during a recent press briefing at the CNOOC Kingfisher oil field camp. 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. According to Ambassador Lizhong, China has committed to ten partnership actions aimed at fostering Africa’s modernization.
While only six months have passed since the summit, Uganda and China have already begun implementing some early-stage agreements.
China’s political and economic engagement with African states is a hot topic. in popular debate. 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. While they cater to all-rather than focusing on Chinese consumer goods and services alone, the main products sold are shoes, clothing, and bedding.
Opinions vary in Uganda on the role China plays in the local economy. Ugandan business owners have expressed opposition to Chinese influence in the country. Shopkeepers and creators of local goods have difficulty competing with the price of Chinese exports. In addition, local construction companies introduced a bill that would force the national government to prioritize local construction companies in the completion of government projects.
Some concerns come with these partnerships. One major concern is the debt associated with these projects. Many of these infrastructure ventures are funded through loans provided by Chinese financial institutions. Moreover, there have been criticisms regarding the lack of transparency in project execution and environmental considerations. Some projects have faced allegations of inadequate environmental impact assessments and labor disputes.
China's growing influence in Africa.
International cooperation can play a significant role in addressing these challenges. Partnering with other countries and organizations can provide diversified sources of funding and expertise, reducing dependency on a single foreign investor.
In a nutshell, China’s infrastructure investments in East Africa, particularly in Kenya and Uganda, have reshaped the economic and transportation landscapes of these nations.
Challenges and opportunities
However, some concerns come with these partnerships. One major concern is the debt associated with these projects. Many of these infrastructure ventures are funded through loans provided by Chinese financial institutions. Moreover, there have been criticisms regarding the lack of transparency in project execution and environmental considerations. Some projects have faced allegations of inadequate environmental impact assessments and labor disputes.
Ugandan business owners have expressed opposition to Chinese influence in the country. Shopkeepers and creators of local goods have difficulty competing with the price of Chinese exports. In addition, local construction companies introduced a bill that would force the national government to prioritize local construction companies in the completion of government projects.
On the Ugandan side, the topic of Chinese traders remains controversial. Their views, that life in Uganda “is not easy,” contrast with Mr. beginning of this paper that life in Kampala is “interesting”.
There are two main ways China is characterized in the debate on China-Africa: as a sincere partner in development or as a threat, such as through economic competition and questionable labor and business practices.
The Chinese have been directing the construction of an express highway connecting the major city of Entebbe to the capital, Kampala. The Chinese-built Isimba hydropower project on the Victoria Nile in Kayunga, Uganda, was inaugurated on March 21, 2019. The power plant is intended to address a power shortage facing the country. The project had hired more than 3,000 workers, of whom 85 percent were Ugandans. China tops the list of major foreign investors in Uganda, according to the East African nation's investment authority.
East Africa: Five banks incl. S. Two Chinese state-owned companies have started building onshore facilities for an oil field in western Uganda, despite environmental concerns and financing issues with the project.
The joint venture between Offshore Oil Engineering Co. and China Petroleum Engineering & Construction Corp. is part of the East African Crude Oil Pipeline Project, which will transport oil pumped in Uganda to the port of Tanga in Tanzania for export. But the developers face opposition from residents, as well as environmental and climate-change advocacy groups. They are also struggling to obtain $3 billion in loan financing to complete the project.
Chinese oil companies are pouring money into exploring for and producing oil and gas in Africa. More than 25% of China's oil and gas imports come from Africa, which is its second-largest source of supply, after the Middle East.
In February 2025, the East African Court of Justice held an appeal hearing in Kigali in the case brought by several NGOs contesting the agreement between the Ugandan and Tanzanian governments on the EACOP project. This colossal project, led by TotalEnergies, involves the construction of the longest heated oil pipeline in the world, connecting the oil reserves around Lake Albert in Uganda to the Tanzanian port of Tanga.
The East African Legislative Assembly (Eala) has strongly castigated opponents of the Hoima-Tanga crude oil pipeline. Ms Mary Mugyenyi (Uganda) said her country and Tanzania were united against the critics of EACOP and would go ahead with its implementation.
In 2014, China sentenced two Ugandans to death for drug trafficking in Guangdong province.
Here is a table summarizing key aspects of China's engagement in Uganda:
| Area of Engagement | Details | Impact |
|---|---|---|
| Infrastructure Development | Construction of highways, hydropower plants (e.g., Karuma, Isimba), and expressways (e.g., Entebbe-Kampala Expressway) | Improved connectivity, increased trade, addressed energy deficits |
| Trade Relations | China's exports to Uganda: machinery, electrical equipment. Uganda's exports to China: raw materials (hides, oils, seeds) | Increased trade volume, economic opportunities for both nations |
| Education | Scholarships for Ugandan students to study in China, Confucius Institute at Makerere University, Luyanzi College Bweyogerere | Enhanced skills, cultural exchange, educational opportunities |
| Health Sector Support | Donation of anti-malaria drugs, renewal and upgrade of China-Uganda Friendship Hospital | Improved healthcare services, combating diseases |
| Economic Support | Zero-tariff treatment for certain Ugandan exports, food aid, bamboo plantation project | Boosted economic growth, agricultural development, food security |
Popular articles:
tags: #Uganda
