Uganda’s finance ministry has announced plans to borrow a $150m (£118m) loan from China’s Exim bank to develop the country’s internet infrastructure.
Uganda’s ICT minister and junior finance minister presented the proposal on Monday to the parliamentary committee on national economy.
The move highlights Uganda’s growing reliance on China for funding after the World Bank, one of its largest funders, suspended funding in August due to Uganda’s adoption of a contentious anti-homosexuality law.
Uganda previously took out a controversial $200m loan from the Chinese bank to expand the Entebbe International Airport.
The loan has been criticised by some as imposing exploitative terms on Uganda.
Uganda is also in talks with Chinese export credit agency Sinosure for a loan to help fund a $5bn pipeline through which Uganda plans to export crude oil to Tanzania.