The loan which will be used to finance the supply, installation and commissioning of the national backbone data transmission infrastructure marks Uganda’s growing dependence on Chinese donors.
Uganda is preparing to borrow $150 million from the China Export-Import Bank (China Eximbank) to develop its Internet infrastructure, the Ministry of Finance announced on Monday (November 27).
“ The Minister of Finance and the Minister of Information and Communication Technologies asked the deputies to authorize a loan of 150 million dollars from China Eximbank, ” specified the ministry on its account Twitter), stating that the funds will be used to “ finance the supply, installation and commissioning of the national data backbone infrastructure ”.
This loan marks Uganda’s growing dependence on Chinese lenders, after the World Bank suspended financing for new projects in the East African country in protest against the promulgation of a new anti-homosexuality law.
In addition to this loan, Uganda has started negotiations with the Chinese export credit agency SINOSURE and China Eximbank on a loan to finance the construction of an oil pipeline, which will be used to facilitate crude exports to international markets.
Ugandan President Yoweri Museveni promulgated an anti-LGBT+ law last May providing for heavy penalties for same-sex relations and the “ promotion ” of homosexuality. Considered one of the most repressive in the world, this new legislation has sparked outrage among human rights organizations and many Western countries.