The head of State House Investors Protection Unit (SHIPU), Col. Edith Nakalema has commended the Chinese government for supporting Uganda’s investment agenda.

She is now urging the Chinese to build on the existing good relations to increase their investments in Uganda.

She was speaking during March 7th, 2024 meeting with Chinese Embassy in Uganda officials at SHIPU offices on Plot 51B along Lumumba Avenue, Nakasero Kampala to discuss the concerns of Ugandan investors and traders.

The officials included Minister Counselor Fan Xuecheng, David Wang, the First Secretary, and Kakoza Li, the third Secretary.

The Minister Counselor hailed Uganda for her favorable investment climate.

He however, expressed concerns over a section of Ugandan local businessmen who accuse ‘Chinese of taking over their businesses’, an accusation that has been amplified by their umbrella organization, Kampala Capital City Traders (KACITA) and other Associations under the Federation of Uganda Traders Association (FUTA).

Thousands of private and Chinese government-backed entrepreneurs and companies are now well established in Uganda with several involved in construction, energy, hospitality, manufacturing, logistics, mining as well as the oil and gas sector.

Many more are also into wholesale and retail business.

Traders accuse a section of Chinese for engaging in petty trade, which has crowded out local businessmen.  Traders are also not happy that some Chinese have set up micro businesses here in Uganda that are intended for local investors but are given tax holidays.

Traders also complain that when they go to China to buy goods, sometimes the receipts issued to them do not indicate the quantity and prices which puts them at loggerheads with tax body URA when it comes to taxation.

Traders are also complaining of poor quality of the jeans and khakis manufactured by Chinese companies in China.

A section of Chinese businesses have been accused by their Ugandan employees of exploitation, maltreatment, and poor working conditions.

Col.Nakalema said she learnt about the traders concerns during a recent meeting with KACITA and FUTA members and has tasked the Chinese officials to look into them.

Minister Counselor Fan Xuecheng assured Col.Nakalema that all the traders’ concerns will be addressed.

He said the Chinese Embassy in Uganda is ready to collaborate with the Ugandan government to, among others, work to expand investments in Uganda.

He also pledged to do whatever it takes to rally his people home and in other countries to come and invest here as part of the broader plan to deepen Chinese investment relations with Uganda.

Mr. Fan further thanked the Ugandan government for creating a secure environment that not only embraces investors but also provides the relevant support required for investors to thrive.

“I thank and congratulate the President of Uganda for creating this office [State House Investors Protection Unit] which I understand is meant to protect all investors. This is a good initiative and gives established and prospective investors confidence in Uganda,” Mr. Fan said.

Col. Nakalema commended the Chinese government for the good relations with Uganda and reiterated that the State House investors’ protection unit is committed to coordinate all key stakeholders in order to secure a conducive investment climate in Uganda.

During the same meeting, Col. Nakalema took Embassy officials through the Electronic Investor Protection Portal (EIPP) that President Yoweri Museveni launched on December 13, 2023.

This is an online reporting portal (protection.statehouseinvest.go.ug) where investors—local and foreign—can report their concerns and get solutions promptly.

UGANDA’S TRADE WITH CHINA

Available statistics by the Observatory of Economic Complexity (OEC), a data visualization site for international trade, indicate that in December 2023, China exported $116M and imported $5.75M from Uganda, resulting in a positive trade balance of $110M.

Between December 2022 and December 2023 the exports of China have increased by $23.4M (25.3%) from $92.5M to $116M, while imports decreased by $-357k (-5.85%) from $6.11M to $5.75M.

Trade: In December 2023, the top exports of China to Uganda were Other Construction Vehicles ($11.6M), Telephones ($5.79M), Electric Generating Sets ($3.64M), Excavation Machinery ($3.58M), and Bedspreads ($3.52M). In December 2023 the top imports of China from Uganda were Veneer Sheets ($984k), Rosin ($641k), Other Oily Seeds ($618k), Tea ($211k), and Aluminium Bars ($206k).

Origins: In December 2023 the exports of China were mainly from Beijing ($20.2M), Zhejiang Province ($16.6M), Shandong Province ($15.3M), Jiangsu Province ($12.9M), and Guangdong Province ($12.6M), while imports destinations were mainly Jiangsu Province ($1.8M), Shandong Province ($1.6M), Guangdong Province ($874k), Zhejiang Province ($658k), and Beijing ($286k).

Growth: In December 2023, the increase in China’s year-by-year exports to Uganda was explained primarily by an increase in product exports in Other Construction Vehicles ($11.6M or 291k%), Electric Generating Sets ($3.18M or 693%), and Excavation Machinery ($2.67M or 293%). In December 2023, the decrease in China’s year-by-year imports from Uganda was explained primarily by an decrease in product imports  in Other Oily Seeds ($-1.48M or -70.5%), Aluminium Bars ($-56k or -21.4%), and Tanned Goat Hides ($-40.2k or -48.6%).