Ghana’s relations with China

The document examines the multifaceted relationship between Ghana and China, highlighting China's role as a major development partner providing infrastructure loans and technical assistance. It analyzes the trade imbalance characterized by Ghana's export of primary commodities and import of Chinese manufactured goods, and evaluates Chinese foreign direct investment, which is predominantly concentrated in non-extractive sectors through small and medium-sized enterprises.

• China has emerged as a critical development partner for Ghana since 2001, focusing its assistance on telecommunications, energy, and road infrastructure, as well as technical cooperation in agriculture and industrial equipment.
• A major component of Chinese assistance is the $562 million loan from the China Export and Import Bank for the Bui dam project, intended to help increase Ghana's energy supply capacity from 2,000 MW to 6,000 MW by 2015.
• Trade between the two nations follows a North-South model, resulting in a significant trade deficit for Ghana; imports from China rose from $93.13 million in 2000 to $433.74 million in 2005, while exports grew only marginally to $31.26 million.
• Chinese manufactured goods, particularly textiles, pose a threat to local Ghanaian producers; for instance, Chinese mass-produced versions of traditional Kente cloth are sold at prices significantly lower than locally produced versions.
• Contrary to narratives of a 'scramble for resources,' Chinese foreign direct investment (FDI) in Ghana is primarily in non-extractive sectors. While China ranks sixth in total investment value ($75.8 million), it leads in the number of projects with 283 registered between 1994 and 2007.
• Chinese investment is largely driven by small and medium-sized enterprises (SMEs) that often enter the market through low-risk general trading before moving into manufacturing and agro-processing.
• Chinese state-owned enterprises (TNCs) often engage in turnkey projects funded by Chinese policy banks, which sometimes leads to the circumvention of Ghana's National Procurement Act regarding public tendering.

APA

Idun-Arkhurst, I. (2008). Ghana’s relations with China. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_03_idun_arkhurst_200804.pdf

Chicago

Idun-Arkhurst, Isaac. Ghana’s relations with China. South African Institute of International Affairs, 2008. https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_03_idun_arkhurst_200804.pdf.

Wikipedia

{{cite report |last1=Idun-Arkhurst |first1=Isaac |title=Ghana’s relations with China |publisher=South African Institute of International Affairs |date=2008 |url=https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_03_idun_arkhurst_200804.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{idunarkhurst2008ghanas, author = {Idun-Arkhurst, Isaac}, title = {{Ghana’s relations with China}}, institution = {South African Institute of International Affairs}, year = {2008}, url = {https://saiia.org.za/wp-content/uploads/2008/04/chap_rep_03_idun_arkhurst_200804.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }