The Ugandan government has lost its major airport to China for failing to repay a loan. The government failed to reverse a loan agreement with the Chinese which had repayment conditions of attaching its airport. President Yoweri Museveni had sent a delegation to Beijing hoping to renegotiate the toxic clauses.
The visit was unsuccessful as China authorities refused to allow any alteration in the original terms of the deal. The Ugandan government, represented by the finance ministry and the civil aviation authority, has on November 17, 2015, signed an agreement with Export-Import Bank of China (Exim Bank) to borrow $207 million at 2% upon disbursement; with a maturity period of 20 years including a seven-year grace period. The deal signed with the Chinese lenders virtually meant Uganda “surrendered” its key airport to China.
In what is yet another move to acquire foreign assets on account of default of loans China allegedly has taken over the Ugandan Entebbe International Airport and other assets in the Eastern African country.
Ugandan President Yoweri Museveni had sent a delegation to Beijing for a renegotiation with the Chinese government.