BEIJING: China’s soft loans to Uganda have reached 2.5 billion U.S. dollars, a signal of the two countries deepening relation, a Chinese envoy said.
Zhao Yali, Chinese ambassador to Uganda said most of the loans are funding key infrastructure projects which are critical in boosting the country’s economic and social development.
Zhao was speaking late on Thursday at a reception marking the 66th anniversary of the founding of the People’s Republic of China.
China is funding the construction of Karuma and Isimba Hydro Power Stations, the Standard Gauge Railway and the expansion of the country’s international airport among other projects.
Zhao told the gathering also attended by Uganda’s President Yoweri Museveni that China’s investment in Uganda has reached 1.1 billion dollars.
Major investments are in Uganda’s oil sector where China National Offshore Oil Corporation has a stake.
Zhao also said the bilateral trade has reached 377 million dollars, an increase of 23.2 percent over the same period last year.
Museveni said China has extended a lot of financial support to Africa especially in key areas that will fast track the continent’s economic development.
Chinese President Xi Jinping while speaking at the UN on Saturday announced a new development assistance fund for the least developed countries with an initial investment of 2 billion dollars that could grow to at least 12 billion dollars by 2030.
African countries through the South to South cooperation are set to benefit from the fund to lift millions of its people out of poverty.
China also pledged to exempt the debt of the outstanding intergovernmental interest-free loans due by the end of 2015 owed by the relevant Less Developed Countries, landlocked developing countries and small island developing countries.
