Trade between China, Ghana to hit $6bn
China’s trade with Ghana is likely to hit $6 billion by the end of this year. This represents an increase of $400million on the $5.6billion that was recorded in 2014.
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Currently, the country is China’s seventh biggest trading partner in Africa.
Trade between the two coutnries is expected to further increase as China, the world’s second largest economy, will implement its new three-year strategic and cooperative partnership with Africa from next year.
The strategic partnership, which was signed between China and 50 African countries at the 6th Forum of China-Africa Cooperation in Johannesburg, South Africa earlier this month, would see China providing $60billion of funding support to African countries from 2016 to 2018.
The first component of the support, which amounts to $5billion, will be in the form of grants and interest free loans, while $35billion and $10billion will be concessional loans and export credits and the initial capital for the China-Africa fund for production capacity cooperation, respectively.
Five billion dollars each will be dedicated to the China-Africa Development Fund and the special loan for the development of African small-medium enterprises (SMEs).
Strategic areas
Speaking at a press briefing to throw more light on the new strategic plan at her residence in Accra last Monday, the Chinese Ambassador to Ghana, Ms Sun Baohong, said the amount would be used to focus on 10 areas which had the potential to promote a win-win mutual cooperation between African countries and China.
These areas, she stated, included industrialisation, agricultural modernisation, infrastructure development and the development of green and renewable energy.
Others are trade and investment, peace and security, public health and financial assistance.
The rest are cultural exchange and poverty reduction.
“These 10 areas will provide a blueprint for China –African cooperation. A mutual beneficial relationship where both sides are determined to benefit and help each other,” she said.
Industrialisation
According to her, China was not only interested in providing financial assistance to Ghana but was also determined to bolster industrial cooperation, adding “we are encouraging more Chinese companies to invest in the country, as well as train many people in technical and vocational skills to help in the growth of industries.”
Reliable partner
Ms Sun emphasised the need for the government to work out an integrated strategy in order for the country to fully benefit from the new Chinese action plan for Africa.
“For the past 55 years, Ghana has been a trusted and reliable partner and we know that it has more potential to tap into the benefits of this new strategic action plan when implementation starts next year,” she added.