China takes control of Uganda’s only international airport Reason ???
China takes over Uganda’s only international airport !!! Raison???
Uganda in East Africa is one of the poorest countries in the world. Uganda, which faces economic challenges, decided to borrow from other countries in 2015. eventually negotiated with China accordingly.
The Chinese government has also agreed to lend to Uganda. An agreement was also reached to mortgage the property, including Entebbe Airport, in exchange for the loan. Meanwhile, China is reportedly adamant in its decision to acquire Uganda’s only international airport because it has failed to repay its loan to China.
As a result, the Ugandan government’s finance and civil aviation departments traveled to China in an attempt to secure a loan. Following this, on November 17, 2015, a loan agreement was signed between the Ugandan government and between the Export-Import Bank of China (EXIM). The Chinese government accepted a 20-year loan of $ 207 million with a 7-year grace period at 2% interest. Uganda, meanwhile, seems unable to repay its debt. The dangerous condition of the loan agreement is that China can take over Entebbe airport if it does not repay the loan.
Following this, Ugandan President Yoweri Museveni sent a high-level delegation to China. China has denied having relaxed the terms of the deal while negotiating the removal of the dangerous clause. This ensures that Uganda loses its only international airport to China. And since there is no international protection in this loan agreement, it seems that Uganda cannot seek help from other international organizations.