China’s money in Uganda: Where has it gone?

Chinese investment in the country is currently worth $596m creating employment opportunities for more than 30,000 Ugandans. The total amount invested in bilateral trade alone is worth $400m.

Mr Xu says these concerns have been brought to the attention of the Chinese Embassy in Kampala and “we have had various discussions with the government over the matter.” He reckons the problem is partly caused by the fact that “many Chinese, especially in rural China, still live under difficult circumstances,” forcing them to spread out in search for opportunities.

Mr Xu says their embassy is not in charge of Uganda’s borders and since not every Chinese business person who comes to Uganda registers with them. “We cannot control all of them,” he says. Since the first Chinese company set foot in Uganda in 1993 until the end of September 2012, UIA had registered 322 Chinese companies.

UIA figures show that between the same period, Chinese companies had invested $683m in Uganda, excluding the investment by the Chinese National Offshore Oil Company, which bought a one-third stake in Uganda’s oil sector last year.

emukibi@ug.nationmedia.com