Chinese Government has reacted to reports that it would take over Uganda’s sole International Airport over failure to repay over $200 million loan it took from China Exim Bank to expand its Entebbe International Airport.
Recent reports had made the rounds claiming Uganda’s President Yoweri Museveni, had made several failed attempts to renegotiate the toxic clauses associated with the said loan, but China authorities were reportedly unwilling to allow any alteration to the original terms of the deal.
China's refusal to reconsider, therefore, suggests the Ugandan government has no choice but to give up its priced asset should it fail to meet the terms of the deal.
The latest development although primarily an issue affecting Uganda as a country, has however, sent Africans into some form of frenzy particularly countries heavily indebted to China.
There has been concerns by the United States and EU over china's growing presence in Africa, and fears that China may re-colonize Africa by ensnaring African countries into debts they would not be able to repay.
In fact, the recent visit by US secretary of state Antony Blinken to Africa, where he set foot in Kenya, Nigeria and Senegal, is believed to be a signal that the US wants to renew its interest in the African continent.
Blinken’s visit according to The Conversation, was to 'set a new tone and underscore the Biden administration’s belief that Africa matters to the US as a strategic partner.'
China knowing fully well that turning the African continent against it, would jeopardise its interests and likely damage relations, something the West would see as a good development, has come out to refute claims it would take over the Ugandan Government’s Priced asset.
Reacting in a statement on Sunday, the Chinese embassy in Uganda stated that it has not taken over the asset of the East African country.
“All loan agreements, including that of the Entebbe Airport Expansion and Upgrading Project, are voluntarily signed by both parties through dialogue and negotiation on equal footing without any hidden terms or political conditions attached,” the embassy stated.
“Terms of the loan agreement for Entebbe Airport Expansion and Upgrading Project are in full compliance with the prevailing conventions and practices in the international financial market. The malicious allegation that “Uganda Surrenders Key Assets for China Cash” has no factual basis and is ill-intended only to distort the good relations that China enjoys with developing countries including Uganda.
“Not a single project in Africa has ever been “confiscated” by China because of failing to pay Chinese loans. On the contrary, China firmly supports and is willing to continue our efforts to improve Africa’s capacity for home driven development.”
In another statement, Vianney Luggya, spokesperson of the Uganda Civil Aviation Authority (UCAA), stated that viral media reports on the takeover of the airport is false.
“I wish to make it categorically clear that the allegation that Entebbe Airport has been given away for cash is false. The government of Uganda 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,” he said.
Report had claimed that the Uganda Civil Aviation Authority (UCAA) said some provisions in the Financing Agreement expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing.