Kampala — Walk downtown Kampala, in Kikuubo, Mukwano Arcade or Luwum Street, pick a shirt, shoe or radio and look for the trade label, chances are that you will find: 'Made in China'.

An increasing number of goods on sale in our shops and markets come from China. This is not only the case in the capital.

At the Saturday market at Corner Amach, about 11km from Lira town, small pick-up trucks are seen loaded with Chinese merchandise and traders.

Even before looking at the trade statistics, there are two distinct features that signify the increased presence and influence of China here: a growing number of Chinese nationals and a huge assortment of their imported products.

The Chinese ambassador to Uganda, Sun Heping, told Business Vision that there are about 5,000 registered Chinese residents in Kampala, Jinja and Entebbe. But it is estimated that a lot more are in the country without being registered.

The most visible indication of Chinese presence in Uganda is the Mandela National Stadium in Namboole, built and financed by the Chinese.

According to the ambassador, this is part of China's mission to change Africa through a "win-win" strategy.

Chinese support

The huge levels of financial and technical input China is making in Uganda and Africa are well documented.

Last year, China sunk sh304b ($141m) in Uganda. This came alongside a $17.5m (sh36b) debt write-off, and over $100m loan for the Government's e-government project, and another loan of $11m for sanitation equipment for the Kampala City Council.

In the health sector, China has sent in scores of health experts over the years. In April, Uganda received a consignment of malarial drugs worth sh860m ($400,000) from China.

In education, too, China is extending its support. There are currently about 100 Ugandan students in China and Beijing has provided some 35 scholarships in the last few years.

And then, there is Chinese involvement in the agricultural sector they know best: rice growing. The Chinese started the first rice farming project in Uganda, the 1,721 acres farm in Kibimba, Eastern Uganda.

But is Uganda gaining?

On the whole, China is a late entrant onto the resources bandwagon for Africa. But its commercial footprint all over the continent is expanding.

When you pit 30 million Ugandans against over a billion Chinese, all scrambling over limited natural resources to feed their economy and population, one can imagine the nature of China's interest in Africa.

A report from the Brussels University in Belgium, presented to the European Union parliament in 2007, says China's aggressive entry into Africa is now a major concern for powers like Europe and the U.S.

The report "China's resources and energy policy in Sub-Saharan Africa" predicts China will achieve its goal of doubling its trade volumes with Africa, with raw materials making up the largest part of this increase.

If this happens, Africa will continue to get a raw deal in cheap unprocesIn particular, the report says, oil exports are expected to skyrocket.

"It suffices that CNPC (China's state owned oil giant) achieves its production targets for block-6 in Sudan for at least $2 billion to be added to the current Sino-African trade volume of $6.4b," reads the report.

The recent discovery of huge oil deposits will most certainly make Uganda a major target country for China.

A deeper look indicates a more lopsided relationship. Thirty African states import more from China than vice versa, the report states.

"For 20 African states, trade revenues make up less than 25% of their total trade volume, which implies that they have to pay China at least three times more than what they earn from their exports."

Trade imbalance

Exports from Uganda to the entire Asian market amounted to $48m in 2003. By 2007, the figure had made a slight leap to $72m.

Uganda's exports to China are mainly leather products, frozen fish, agriculture products, sawing timber, cotton, copper and grit.

According to statistics from the Chinese Customs Authority, availed by the Chinese embassy, the volume of trade between China and Uganda reached $247m in 2008.

Of this, Chinese exports to Uganda amounted to $230m, while China imports a paltry $17m from Uganda.

The imbalance shows more of a China-win situation than a win-win situation.

In general, China is now the fifth biggest investor in Uganda, with about 30 registered companies. Ironically, China accounts for only 0.71% of Africa's total foreign direct investment.

Influx of cheap sub-standard goods

Samuel Odera, who imports Chinese products in containers, says his goods have the biggest market because they are cheap.

"Within two hours of packing my container in Kikuubo, I have no products left," he says. The cheap imports come at a cost, though.

Domestic production has been replaced by cheaper imports from China, thus hampering the development of local industries and the Government's efforts to transform society. Often, sub-standard Chinese products replace the few African products.

Ambassador Heping agrees that a lot of sub-standard products still leave China and find their way to Africa. He, however, denies that it is a deliberate policy of the Chinese government to export low quality products to Africa.

Influx of unskilled Chinese citizens

The ministry of internal affairs was unable to avail relevant statistics of the number of Chinese visitors or residents in Uganda.

"We electronically capture data from just four entry points. The rest is done manually. So giving the exact number of particular foreign citizens takes time," said public relations officer Eunice Kisembo.

There are 34 entry points according to Kisembo. But sources say there could be tens of thousands of Chinese in Uganda, some of them seen doing the most basic casual work at construction sites.

In the national e-government project alone, 100 Chinese nationals are directly involved. One of the criticisms on the Chinese involvement in Africa is that they tend to replace Ugandan workers with their own and leave very little behind in terms of capacity building, skills training and technology transfer.

Which way Africa?

Observers say Africa should never expect to change its destiny by casually engaging with external powers.