A high-level delegation from the Export-Import Bank of China (China Exim Bank), led by Vice President Yang Dongning, recently concluded a working visit to Djibouti and Uganda. The trip, which took place on March 24, 2026, focused on strengthening financial cooperation and exploring new investment opportunities in key infrastructure projects, according to reports from the bank. This visit underscores China’s continued commitment to development initiatives across Africa, particularly those related to trade and infrastructure financing.
Yang Dongning’s visit to Djibouti and Uganda comes at a crucial time for both nations. Djibouti is strategically positioned as a major logistics hub in the Horn of Africa, while Uganda is experiencing rapid economic growth and seeking to expand its infrastructure network. The China Exim Bank has been a significant partner in funding infrastructure projects in both countries, and this visit aimed to build on that existing relationship. Understanding the specifics of these financial partnerships is key to assessing China’s broader economic strategy in Africa.
Strengthening Ties with Djibouti
In Djibouti, Vice President Yang met with government officials to discuss ongoing projects financed by China Exim Bank, including the Djibouti International Free Trade Zone (DIFTZ). The DIFTZ, a flagship project under China’s Belt and Road Initiative, is designed to transform Djibouti into a regional trade and logistics center. Discussions reportedly centered on accelerating the development of the free trade zone and attracting further investment. The Belt and Road Initiative, launched in 2013, aims to improve connectivity and cooperation across Asia, Africa, and Europe through infrastructure development.
According to statements released by the Djibouti government, the talks also covered potential financing for new infrastructure projects, including upgrades to the Port of Djibouti and improvements to the country’s railway network. Djibouti’s strategic location makes it a vital link in global trade routes, and Chinese investment is playing a key role in enhancing its capacity. The China Exim Bank’s involvement is seen as crucial for Djibouti’s economic diversification and long-term growth.
Focus on Infrastructure Development in Uganda
The Ugandan leg of the trip focused on evaluating the progress of existing infrastructure projects and identifying new areas for collaboration. Yang Dongning held meetings with Ugandan President Yoweri Museveni and other senior government officials. Key topics included the financing of the Standard Gauge Railway (SGR) project, which aims to connect Uganda to Kenya and eventually to the port of Mombasa in Kenya. The SGR has faced delays and funding challenges, and the China Exim Bank’s continued support is considered essential for its completion. The Uganda Standard Gauge Railway project aims to modernize the country’s transport infrastructure and boost regional trade.
Discussions also extended to potential investments in Uganda’s energy sector, including renewable energy projects and upgrades to the national power grid. Uganda is seeking to increase its electricity generation capacity to meet growing demand and support its industrialization efforts. The China Exim Bank has previously provided financing for several energy projects in Uganda, and further collaboration is expected in this area. The bank’s focus on sustainable development aligns with Uganda’s efforts to promote green energy solutions.
Challenges and Considerations
While Chinese investment has brought significant benefits to Djibouti and Uganda, it has also raised concerns about debt sustainability and the potential for economic dependence. Some analysts have warned that excessive borrowing from China could lead to debt distress, particularly in countries with limited fiscal capacity. The Council on Foreign Relations provides analysis on the complex relationship between China and African nations, including discussions on debt and investment.
However, officials from both Djibouti and Uganda have emphasized their commitment to responsible borrowing and their ability to manage their debt obligations. They argue that Chinese financing is essential for addressing their infrastructure deficits and promoting economic growth. The terms of the loans and the transparency of the financing arrangements remain key areas of scrutiny.
The visit by Vice President Yang Dongning also comes amid increasing competition from other international lenders, including the World Bank and the African Development Bank. These institutions are also seeking to increase their investments in African infrastructure, offering alternative sources of financing for Djibouti and Uganda. The competition among lenders could potentially lead to more favorable terms for borrowers.
The China Exim Bank’s role in Africa extends beyond simply providing loans. The bank also offers technical assistance and capacity-building programs to help African countries improve their project management skills and enhance their ability to absorb foreign investment. This holistic approach is seen as a key factor in the success of Chinese-funded projects.
Looking ahead, the China Exim Bank is expected to continue playing a significant role in financing infrastructure development in Africa. The bank’s priorities will likely focus on projects that align with China’s broader strategic interests, including those related to trade, energy, and regional connectivity. The next major checkpoint will be the release of the China Exim Bank’s annual report, expected in early 2027, which will provide further details on its lending activities in Africa.
This ongoing financial partnership between China and African nations like Djibouti and Uganda is a dynamic process with far-reaching implications. We encourage readers to share their perspectives and engage in constructive dialogue on this critical topic.
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