The chinese influence in EA and Africa

By Kavuma-Kaggwa

The Chinese influence has increased tremendously in East Africa and the whole of Africa. Globally also the Chinese influence has taken root and probably that was why in the middle of 2014, former American President, Barak Obama, saw it fit to convene an African Leaders Summit in Washington to tell them that their relationship with America should always be maintained and strengthened.

In Uganda, for example, the Chinese have penetrated into the Government system much more than the Americans and the British, in spite of the fact that the British ruled Uganda for 70 years and the English language is taught in schools from nursery to university. It is the official language for Uganda. President Museveni is happy with the presence of the Chinese. The Chinese do not interfere in the local politics of the host countries.

They are mainly in business, securing big Government contracts. They are also now in retail trade. The most recent biggest contract they have secured is to build the 273km Standard Gauge Railway (SGR) Line from Malaba to Kampala at a cost of sh8.2 trillion.  Recently in Kampala, traders demonstrated on the streets of Kampala against the Chinese, accusing them of being in retail trade, but the Government supported them.

Uganda should copy the Kenyan trading policy, where the manufacturers' remains at their base then the wholesalers go and buy from them then the retailers go to the wholesaler and buy from them and stock their shops.  Allowing manufacturers also to engage in retail trade is very competitively detrimental to the Ugandan traders.

In Kenya they first built the Kasarani National Sports Stadium at Ruaraka on Thika Road. In Uganda they first built the Namboole (Mandela) National Sports Stadium. In Tanzania they first built the Tanzara railway line linking the Port of Dar es Salaam to Lusaka, Zambia. How did this happen? Because of the land communication problems which the newly independent Zambia faced because of being landlocked, former President Nyerere decided to help out to solve the problem.

In 1967 Nyerere approached the US for a loan of $100m payable back within a period of 10 years. America refused to grant the loan which Nyerere had requested. He then approached the Canadian Government which was a Commonwealth country, they too refused. Nyerere then turned to Chinese for this loan. At that time, China was under Chairman Mao Tse Tung (popularly known as Chairman Mao) and Prime Minister Chou en Lai. Again that time Nyerere had turned Tanzania into a socialist state with "the Arusha Declaration of Socialism and Ujama". The Chinese gave Nyerere $100m free grant and he built the railway!

China is one of the big countries on the Asian continent with a population of about 1.5 billion people. This is the biggest in the world followed by India with 1.3 billion people. Like India, who realised under the leadership of Prime Minister Pandit Jawahlal Nehru that in future they will have to deal and co-operate with independent Africa, and in the 1950s they offered scholarships to East Africans, the Chinese did the same.

Their influence in East Africa started in the 1950s when the African freedom fighters were fighting against European colonialism and imperialism to gain independence. China offered financial assistance, but not weapons to the freedom movements in East Africa.

The China of today is a product of what was built by Chairman Mao, the architect of the Chinese Revolution of 1949. He emerged with his communist forces from the south of China and staged the "Long March" to the capital and overthrew the Western backed forces, the Kuo Mitang of Chiang Kai Shek, who was leading China before 1949.

Chiang Kai Shek ran with his forces to Taiwan Islands in the South and set up his Government. For many years, America did not recognise the People's Republic of China. America recognised the Taiwanese Government and it had a seat at the United Nations Organisation in New York. What is interesting is that Britain traded with the People's Republic of China all the time.

After defeating Chiang Kai Shek, Chairman Mao set up his Communist Government in Peking and named the huge country The People's Republic of China. China today has very strict laws whereby robbery and trading in prohibited commodities is punishable by death. Currently there are Ugandans who are facing the death sentence because of trading in prohibited drugs.

China is now an industrial and economic power. Their foreign reserves are third to the US and Germany.

 

China is one of the five permanent members of the UN Security Council in New York. It has a "veto" power. That means that if China rejects a resolution it does not pass. The other permanent members of the UN Security Council are: the US, Britain, Germany and France.

Some years back when the west launched a campaign to end communism in the world, China was reported to have told the west that if they dare attack, then China with its 1.5 billion people, will send only three million soldiers to repel the attack.

The West then decided on two alternatives: open up trade and co-operation with China and educate the young Chinese in western universities then in future the western educated Chinese will gradually do away with the communist system. The decision by the west in the end helped China to open up to the whole world in many ways.

The West with China started to establish industries to manufacture different kinds of goods and they are now sold everywhere on the World market. China is now a big competitor with Japan in manufacturing motor vehicles and electronic goods of all kinds.

In Uganda today, it will take you time to find British products on the market. It is difficult to understand why the good quality British products are no longer sold in Uganda. Now we talk of Britain when it is time for the British Commonwealth meetings. Chinese products are dominant everywhere and Uganda sells nothing, or very little, if any to China. Probably in the future when we shall be producing coffee on a very large scale, we shall force China to buy 70% of our coffee annually.

In Uganda today, the Chinese are now in almost every sector of our economy. They recently signed a big contract in Mombasa with the presidents of Uganda, Kenya, Rwanda and South Sudan to build a trans-Africa railway line linking Mombasa to Kigali, through Uganda and to South Sudan.

With our liberalised monetary system all the profits which the Chinese make out of trade in Uganda is repatriated.

The Chinese formed trading, mining and construction companies which transact a chain of businesses in foreign countries. These companies make money for the people of China. Uganda should do the same. Kenya has done it and they are doing quite well.

With their big foreign reserves, the Chinese get loans from their banks at home at an interest rate of 0.1% to transact business and trade all over the world.

Finally, this is now the time for the people of Uganda to benefit out of the presence of the Chinese in Uganda.

President Museveni should now initiate a firm trading policy whereby China, with its 1.5 billion people should buy 70% of Uganda coffee annually. This will be a very big market for Uganda coffee. China does not grow coffee; therefore, it should buy a big amount of our coffee. This will make the people of Uganda grow more coffee and they will benefit a lot.

President Museveni should now urge China to build four technical colleges in Uganda. One in Buganda, one in eastern, one in northern and one in western Uganda to train Ugandans in technology.

Education in these colleges should be free or highly subsidised by China. China should also offer scholarships to Ugandans, without discrimination, to learn engineering in China so as to empower Ugandan youth.

The time we are in now and for so many years to come, is for planning and economic development. We request President Museveni to allow the Kabaka's Government and other local governments in other areas of Uganda to negotiate with China for development loans to develop their areas.

The writer is an elder from Kyaggwe in Mukono District