Responding to questions from Journalists on Uganda borrowing a lot of loans for infrastructure development, Museveni praised China for giving Uganda loans for projects neglected by other partners. According to Museveni, this has enabled Uganda to save its money for other things, and use the loans, which have a longer repayment period.
President, Yoweri Museveni has praised the Chinese Government
for extending loans to Uganda and Africa where other partners have been
hesitant. He was fielding questions at a press conference he jointly addressed
with visiting Zimbabwean President Emmerson Mnangagwa at State House Entebbe
ahead of today’s Independence Celebrations.
Responding to questions from Journalists on
Uganda borrowing a lot of loans for infrastructure development, Museveni
praised China for giving Uganda loans for projects neglected by other partners.
According to Museveni, this has enabled Uganda to save its money for other
things, and use the loans, which have a longer repayment period.
He said the country’s loan ceiling is still manageable and
there is no cause for alarm. The president also said in order to develop the
economy, factors that influence costs of production like transport, high
interest rates and electricity need to be addressed.
He said Chinese are the only ones who have agreed to lend
Uganda, Kenya and Tanzania to construct the Railway and roads.
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According to the International Monetary Fund (IMF) and World
Bank, Africa is heading towards a debt crisis. Uganda's debt has hit 42
trillion Shillings. Like most African countries, China is the largest
creditor to Uganda disbursing 39 per cent of the total credit in the financial
year 2017/2018, surpassing the traditional creditors such as the World Bank (21
per cent) and the African Development Bank (8 per cent).
In his speech, President, Mnangagwa, thanked President
Museveni for honoring him to preside over this year’s independence celebrations,
saying Southern Africa has a lot to learn from Uganda and East Africa.
According to Mnangagwa, when Uganda got independence in the
early, it inspired some Southern African countries to push for the same.
however, said that as Zimbabawe, they have been surviving by themselves without
any support from foreigners. Mnangagwa noted that the numerous sanctions imposed on the
country have been a big problem to the country’s economy. He however, said they
are moving towards findings African solutions to African problems.
He praised Uganda saying it has contributed to the development
of Southern Africa materially and intellectually, adding that several members
of his cabinet are graduates of Makerere University.
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The two leaders also signed a joint communiqué and agreed
that sanctions against Zimbabwe be lifted immediately. Uganda’s Foreign Affairs
Minister, Sam Kuteesa read out the details of the joint communiqué.