Uganda to borrow $150 mln from China’s Exim after World Bank halts funding

Uganda intends to borrow $150 million from China’s Export-Import Bank (Exim) to expand its internet infrastructure. A common trend amongst East African countries is to receive financial aid from China. These East African countries are becoming reliant on credit. In Uganda’s case, they have to. The World Bank refuses to take out additional loans in Uganda due to an Anti-Homosexuality Act signed by President Yoweri Museveni. The act hands harsh sentences, such as the death penalty, for a range of homosexual activities. Nonetheless, Uganda receives aid from SINOSURE and Exim Bank to finance the construction of a pipeline to enable Uganda’s exports of its crude oil to international markets.

Imperialism had detriment to the countries in Africa. As countries like Uganda aim to better their country financially, they seek aid from the major world powers. Due to this Western World involvement in Africa, the lasting impact is their reliance on loans from superpowers. However, the World Bank’s refusal to give aid to Uganda is interesting. Usually, major world powers would tend to turn from these acts against humanity for the exchange of monetary gain. Yet, the World Bank sets a firm morality to not aid Uganda due to its failure to maintain human rights. Regardless of the World Bank’s decision, through the loan the Chinese government will be able to profit from these East African countries, exploiting to further their own economy.

As a sovereign nation, Uganda’s affairs should be for them to decide. However, when conducting agreements, the World Bank has the choice of whether or not to render aid. At an individual level of analysis, Uganda is trying to better its people, like many countries, who are also fearful of homosexuality debilitating their country. Western Capitalist world had detriment to Africa through imperialism, so they are now turning into communist countries such as China and Russia. Due to this, the future of Africa may be communist, built on the rationale to reconstruct after imperialism. Internationally, this will affect the balance of democratic and authoritarian ideology, which could cause another cold war.

https://www.reuters.com/business/finance/uganda-borrow-150-mln-chinas-exim-after-world-bank-halts-funding-2023-11-27/

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