The Chinese government recently funded a road construction project in Ghana. It is part of a $2 billion infrastructure deal that will give Beijing access to Ghana’s reserves of Bauxite, a crucial source of aluminium.
The China-Ghana deal has attracted a lot of criticism from environmental activists, political groups, and international investment partners. The criticism is over lack of transparency in the deal, and a growing threat to debt sustainability.
China Export and Credit Insurance Corporation sanctioned the first phase of the Ghana project.
Beijing will finance about $2 billion worth of rail, road, and bridge network in Ghana. This is in accordance to the memorandum signed. In exchange, China will get access to 5% of Ghana’s Bauxite reserves.
In addition, Beijing will fund about 100 vehicles for the Ghana Police force, a $42.7 million grant and a debt write off of $259 million Yuan.
Other countries that have made similar deals include Guinea. Guinea received a $20 billion debt write off from China in exchange for access to the bauxite ore.
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