Uganda fell prey to the trap of the world’s most dubious nation, China, which is known to trap the other foreign countries under its ‘debt strategy.’ Uganda is the new victim who has fallen to this ‘debt strategy. ‘
Uganda is likely to lose its only international Airport ‘Entebbe International Airport’ to this communist country as it failed to pay the loan it took to do some developmental work on the airport. China’s Export-Import (EXIM) Bank had lent Uganda $207 million at 2% upon disbursement in 2015. It was lent for the expansion of Entebbe airport. The loan had a maturity period of 20 years and included seven years as a grace period. While taking the loan, the Ugandan Government had refused to take the international immunity that if it failed to pay the debt, the other countries could help but as the international immunity was waved off, it only has the option of losing its international airport and no other countries can show any resentment in this issue. No other country can question China.
It is to be noted that Entebbe International Airport is the only airport in Uganda and handles over 1.9 million passengers.
Uganda, being aware of the possible crisis, deployed a team of officials in March 2021 in China to renegotiate the clauses of the deal, but it all went in vain as the Chinese Government failed to alter the clauses of the original deal. As a result of the failed renovation, Uganda has no option but to close its airport.
Meanwhile, there’s a statement released by the Uganda Civil Aviation Authority Spokesman Vianney M. Luggya that has stated that the country is not giving away its airport to China for ‘cash’.
He reiterated his statement on Twitter that the Uganda Government can’t give away such a national asset. We have said it before and repeat that it has not happened. “There isn’t an ounce of truth in it,” said the spokesman on Twitter, adding that the loan provides a grace period of 7 years, and the country was well within that.
The Chinese Embassy in Uganda has also dismissed the reports of a takeover, claiming that the ‘hype’ surrounding the Chinese ‘debt trap’ in Africa had ‘no factual basis, and it’s all done to spoil the image of China.
Interestingly, last week, Ugandan Finance Minister Matia Kasaija had apologized. After all, it could not repay the Chinese loans that it had taken to build the port.
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