President Obama came to Ghana in 2009 to endorse the country’s good democratic process. In the midst of chaos, needless bloodshed and tainted elections and accompanying violence in parts of Africa, Ghana stood out on the continent, telling a nice story and being a worthy example for the rest.
But beyond a stable democracy, the country is also in search of economic stability and growth, as it is endowed with phenomenal natural resources that serve as raw materials for industry.
According to the Ghana Investment Promotion Centre (GIPC), since 2009 there has been an increase in the number and value of investments from the United States to Ghana.
In 2009, the US registered 12 projects in the country with a total value of US$6.976 million. That increased to 20 at the close of 2011, valued at US$108.304 million.
Kosmos Energy and Halliburton are US companies that operate in the oil and gas sector; Coca-Cola is in the beverage industry; Newmont in the mining sector; General Electric, as well as Cummins Ghana Limited, is in the power sector; Google Ghana, IBM and CSC Computer Systems Ghana are in the ICT sector, with Citi Bank Ghana having correspondent office in Ghana’s financial services industry.
But rival Asian Tiger, China, is on the heels of the traditional Western partners, pledging US$20 billion (GB£12.8bn) in credit for Africa over the next three years, in a push to closer ties and increased trade.
The Chinese have invested in Ghana’s airline industry to serve, primarily, domestic routes, in addition to partnering the Ghanaian government in major infrastructure projects such as build the Bui Hydroelectric Dam. The Asogli Sono Thermal Plant is in partnership with Chinese entities.
In 2009, China overtook the US as Africa’s largest trading partner. Trade between China and Africa totalled US$166 billion in 2011, compared with America’s US$95 billion trade with Africa. China has more than 150 commercial attaches in sub-Saharan Africa. The US has six.
While the GRAPHIC BUSINESS commends China for bringing cheap consumer goods, roads and schools to many parts of Africa over the last decade, we would also urge it to provide more of what many Africans want most: jobs.
But it also appears that Africans are frustrated at China's use of Africa as a source of natural resources and market for its goods, as it may hinder the continent’s effort at taking its billion people out of poverty.
The UN Economic Commission for Africa (UNECA) has recently highlighted the risk Africa’s relationship with the world's second largest economy could pose to attempts to industrialise.
It is for this reason that the Graphic Business therefore calls for more American investments especially in the manufacturing sector to help create more jobs for the unemployed youth.
The paper also calls on other American blue-chip companies to rethink their business policies and models and to allow Ghanaians to own a stake in the companies by investing on the stock exchange.
American companies should not be mere distributors of goods but should seriously think of setting up plants in the country to serve the over 240 million people in the West African sub region.
The GRAPHIC BUSINESS also calls on the United States to up its game in the investment battle in a mutually beneficial partnership with Africa, as has been its hallmark.
Graphic Business/Graphic.com.gh/Ghana
