The Ugandan Entebbe International Airport and other assets in the country have been taken over by Chinese lenders, the Export-Import Bank of China following the failure of the Ugandan government to repay a loan.
It was gathered that the Museveni-led Ugandan government had on Tuesday, 17 November 2015, signed an agreement with Exim Bank to borrow $207 million at two per cent upon disbursement.
The loan had a maturity period of 20 years including a seven-year grace period.
However, it was later discovered that the transaction signed with the Chinese lenders practically means Uganda “surrendered” its only international airport.
In desperation, President Yoweri Museveni sent a delegation to Beijing in March 2021 for a renegotiation with the Chinese government over toxic clauses that exposed the East African country.
However, the officials came back empty-handed as China would not allow the terms of the original deal to be varied.
Note that Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million travellers each year.
China seizing the Entebbe International Airport would incredibly imprint the legacy of the 77-year-old Museveni.
This additionally predicts grave risk for different borrowers from China – including Nigeria as eyewitnesses dread the nation is being offered to the Asian power.
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