Uganda is in the process of securing a $150 million (Ksh.23 billion) loan from China’s Export-Import Bank (Exim) to enhance its internet infrastructure, as disclosed by the finance ministry on Monday.
This move highlights Uganda’s growing dependence on Chinese lenders for financial support, particularly in the wake of the World Bank’s suspension of new funding earlier this year, a response to Uganda’s enactment of a controversial anti-homosexuality law.
On Monday, junior finance and information ministers urged lawmakers to authorize the debt through a statement posted on the X social media platform.
According to the finance ministry, the funds will be utilized “to finance the supply, installation, commissioning, and support of the national data transmission backbone infrastructure.”
Simultaneously, Uganda is in active negotiations with the Chinese export credit agency SINOSURE and Exim Bank to secure additional financing.
This funding is intended for the construction of a pipeline crucial for facilitating Uganda’s crude oil export to international markets.
The World Bank, historically a major development lender for Uganda, suspended its financial support following President Yoweri Museveni’s endorsement of the Anti-Homosexuality Act.
This legislation imposes severe penalties, including the death penalty, for various homosexual activities.
As a consequence, Uganda is seeking alternative sources of funding, turning to China to fulfill its financial needs for critical infrastructure projects.
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