How can Uganda benefit from China's economic rise?

“Success is where preparation and opportunity meet”, is a quote that summarises the conditions and ways in which Uganda may benefit from China’s economic rise.

China’s rise presented enormous demand for commodity exports. A richer China has brought development finance for alleviating Uganda’s infrastructure shortage. Not being altruistic, the new money comes with Chinese contractors – firms and labourers – who present a learning channel for Uganda to gain from technology transfer. Moreover, China is transforming from investment to consumption led growth; portending the relocation of manufacturing value chains from China to more labour abundant locations.  The trade, development financing, and value chain upgrading opportunities are considerable but will not be automatically claimed.  Uganda must entrench incentives to attract inward investment, especially by reducing the cost of doing business and commitment to sustainable policy consistency. This policy note argues that only by being adequately prepared, will Uganda harness these opportunities and embark on a path of industrialization and structural transformation.

 

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