China Boosts Uganda’s Road Sector

An ancient Chinese saying says that if you want to be rich, should build a road first. And so it seems, china wants Uganda to develop gauging by the number of road construction projects being undertaken by Chinese construction companies in Uganda. Being a landlocked country, Uganda relies heavily on road transport, carrying over 95 percent of passenger and freight traffic. Air and water transport are used minimally for trans-boundary transactions. This has limited the maximization of the country’s potential, especially in tourism, agriculture trade. Take Fortportal-Bundibugyo road in the western region which runs up to Lamia in eastern Democratic Republic of Congo. Public transport on this road was limited, and travelers had to expect long tenacious drives on the bumpy road on the hilly terrains. But now, Chinese company Chongging International Construction Corporation is upgrading the 103km road to bitumen standard. According to the Uganda national roads authority, “the upgrading is considered to be important not only in terms of completing the national paved road circuit, but also for international transit traffic to the Democratic Republic of Congo.” The Albertine region where this road passes is also endowed with minerals, including oil. The African Development Bank is supporting the project through a loan to the government of Uganda. Another Chinese company China Communications Construction Company is constructing a $350 Kampala – Entebbe expressway. The 37km main road with an additional 13km spur road will join Kampala the capital city to Entebbe, the country’s single international airport. With Kampala’s congestion growing at an estimated annual rate of 4.5% annually, the express highway, the first of its kind in Uganda, is part of the measures to decongest the central business district and enhance trade movement through, within and out of the greater Kampala Metropolitan Area. The project is funded by a preferential loan from China Export and Import Bank. In June last year, the Chinese government handed over to Uganda a batch of road equipment maintenance as part of a 40 year soft loan of about $106m to boost the country’s road sector. The equipment includes 159 graders, 257 tipper trucks, 12 wheel loaders, 7 excavators, 6 dozers and 2 low loaders. The equipment was distributed to the various local governments across the country. Information from Uganda Investment Authority place China as the country’s main source of direct investment, with more Chinese companies eyeing opportunities in the country’s construction, agriculture and oil and gas sectors.