Ghana and China established a strong diplomatic relationship in 1960, the same year Ghana attained republic status.
This milestone positioned Ghana as one of the earliest sub-Saharan African nations to build diplomatic ties with China.
Over the years, Ghana and China have developed strategic partnerships in various sectors, including the economy, agriculture, education, cultural exchange, health, trade, infrastructure, and more, founded on mutual respect and cooperation.
In 2018, China’s investment in Ghana entered a new phase when Ghana joined the Belt and Road Initiative (BRI). This agreement paved the way for several transformative projects, driving the country’s socio-economic development.
As the Belt and Road Initiative marks its tenth anniversary, it is an opportune moment to celebrate its achievements across participating nations.
Infrastructural Development
One notable BRI project in Ghana is the Tema Port expansion, which aims to revolutionize the country’s maritime capabilities and socio-economic landscape.
Once completed, the project is expected to increase the port’s capacity from handling 800,000 Twenty-Foot Equivalent Units (TEUs) annually to an impressive 3.7 million TEUs, making Tema Port the largest in West Africa.
This expansion will facilitate Ghana’s trade with domestic and international partners, attract more investment, create jobs, and enhance economic growth. By boosting capacity and strengthening regional connectivity, the project aligns with the BRI’s objectives, positioning Ghana as a vital player in global maritime trade.
China’s investments in Ghana extend beyond ports and roads, including rural electrification, vocational training centers, coastal fishing sites, digital infrastructure, and renewable energy. Since the inception of the BRI in 2013, China has consistently financed critical projects in Ghana, significantly contributing to its infrastructural and economic development.
Moreover, Chinese investment in Ghana is diversifying. Companies such as Huawei, Tecno Mobile, and StarTimes have established operations in Accra, signaling a shift from hard infrastructure to soft infrastructure along the Digital Silk Road.
Economic Cooperation
Under the BRI framework, Ghana and China have achieved significant economic cooperation, strengthening their ties through various initiatives. China remains Ghana’s largest trading partner and a leading source of foreign investment.
Bilateral trade between the two nations has grown considerably, with Ghana serving as an essential market for Chinese exports and China becoming a major source of imports for Ghana.
Chinese companies have made substantial investments in sectors such as mining, agriculture, and manufacturing, creating jobs and boosting Ghana’s economy. Key projects, like the expansion of Tema Port and the construction of new railway lines, have improved connectivity and trade efficiency.
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In 2018, the two countries signed the China-Ghana Free Trade Agreement (CGFA), which took effect in January 2021. This agreement aims to reduce trade barriers, promote economic cooperation, and strengthen bilateral relations. It has attracted an influx of Chinese investors and firms to Ghana, generating job opportunities for locals.
Additionally, the Asogli Power Plant project, a collaborative effort between Chinese and Ghanaian investors, has played a vital role in Ghana’s energy sector. As one of the country’s largest thermal power plants, it has significantly bolstered Ghana’s electricity generation capacity.
