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Metropolitan Journal of Academic Multidisciplinary Research

The Effects of Chinese Development Aid and Concessional Loans on Uganda’s Economic Development

Authors: Babirye Peninah

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 4

Published: 30 Apr 2026


Abstract

The study examined the effects of Chinese Development aid and Concessional loans on Uganda’s economic development. The study employed a descriptive survey research design based on quantitative and qualitative approach. A total population of 1,217 individuals working in institutions directly involved in China–Uganda economic cooperation, including officials from key government ministries, agencies such as the Uganda Investment Authority and Uganda Revenue Authority, and stakeholders in sectors affected by Chinese investment from which a sample was selected; a sample size of 315 respondents was selected to participate in the study. The respondents were selected using purposive sampling out of which 301 respondents participated in the quantitative component of the study through structured questionnaires, while 14 key informants were selected for qualitative data collection using semistructured interviews. The study established a positive correlation (Pearson coefficient = 0.632) between Chinese development aid and concessional loans on Uganda’s economic development, confirming a significant contribution to national economic progress. The study therefore, concluded that, development aid and concessional loans collectively exert a positive and significant influence on Uganda’s economic development. Similarly, the study recommended strengthening debt management frameworks to ensure that concessional loans from China remain sustainable and do not exacerbate Uganda’s debt vulnerability.
Keywords

Development Aid, Concessional Loans, Economic Development, Uganda.

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