Research on the Chinese Investments in Ghana

Abstract

Unlike the Paris Club of donors and the international financial institutions, China exerts no political pressure on African governments for political and economic reforms, although such massive economic and financial assistance cannot avoid having political repercussions. China’s only declared condition is the recognition of its "one-China" policy, by which African governments are expected to break off diplomatic relations with Taiwan. In contrast to other donors, China usually does not offer grants to African countries, but to increase its leverage on borrowing countries, China forgives the debts of borrowers that develop strong political and economic relations with it within an agreed timetable. Ghana is not an exemption and hence China continues to invest in Ghana and help in the country’s economic development. According to the result of the research, 47 Chinese projects were registered in 2009, 72 in 2010 and 82 projects were registered in 2011. The data was mainly secondary from literature and Ghana Investment Promotion centre, the Government institution in charge of foreign investment in Ghana.

Key words: Investment, Manufacturing, Construction, growth and commercial