China will not take over Uganda's assets because of failure to pay back loans, Finance minister Matia Kasaija has said.
Kasaija says Ugandans shouldn't be worried because all the money owed to China shall be serviced thanks to the government's smart investment decisions. Uganda owes China $1.6 billion. Kasaija said Uganda's economy is growing at a fast pace, adding that unless there is a catastrophe, nothing will stop Uganda from servicing the Chinese loans.
A June 2018 report showed public debt amounted to $10.7 billion, 41.5% of the country's GDP. The international standard is 50% or higher.
Last year, China took over Sri Lanka's port for 99 years over failure to service loans. There are reports that China may take over Zambia's airport and national power distributor, and Kenya's Mombasa port, due to these countries' failure to service their loans.
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