Dec. 2nd, 2021
In a recent article published by the Mail Online on the 30th November 2021, Lauren Lewis reports on the CCP luring Uganda and other poor nations into ‘debt traps’. Uganda has been looking to expand and upgrade its international airport ‘Entebbe’ and took out a loan to the sum of $200million from the Chinese Communist Party (CCP) in 2015 and even though the loan agreement has not yet been made public, a parliamentary probe last month concluded that the CCP has imposed substantial conditions on the loan, including the potential relinquishment of the airport if Uganda was to default on the huge loan.
Mr Joel Ssenyonyi a Ugandan politician and lawyer revealed the agreement also requires any dispute arbitration or court proceedings to take place in China under Chinese law, saying “So Uganda is locked out entirely, the contract is one-sided.”
The report caused a stir in Uganda, with a photoshopped image of the communist Chinese flag flying over the airport and another with a mock banner reading ‘Welcome to China Entebbe International Airport’ which was shared extensively on social media. Mr Ssenyonyi, who chairs the committee that conducted the parliamentary probe, said it gives the Chinese ‘state-owned Exim Bank approval powers over the airport’s annual budgets and that the loan terms allow China to ‘grab’ the airport in case of default. This is a common event whenever China offers a loan to any poorer country there are always many strings attached, you would think that these so-called politicians would be well aware of China’s history with these ‘debt trap’ scenarios.
For more information relating to this story please click here: China is forced to deny rumor that it will take control of Uganda’s international airport should the country default on $200million loan from Beijing
Editor: Mini Cow / PR: Mr Cow
Edited by：【Himalaya London Club UK】
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