People's Republic of China – Ghana relations
Encyclopedia
Sino-Ghanan relations refer to the current and historical relationship
Bilateralism
Bilateralism consists of the political, economic, or cultural relations between two sovereign states. For example, free trade agreements signed by two states are examples of bilateral treaties. It is in contrast to unilateralism or multilateralism, which refers to the conduct of diplomacy by a...

 between the Republic of Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...

 and the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

 (PRC).

History

Relations between the two countries date back to 1960 when the countries first established diplomatic relations. Since then Ghana has provided substantial diplomatic support to the PRC with the PRC reciprocating with material support for Ghana's development. In the 1960s President Nkrumah lobbied for the PRC's reinstatement in the United Nations. Nkrumah also supported the PRC during the Sino-Indian War
Sino-Indian War
The Sino-Indian War , also known as the Sino-Indian Border Conflict , was a war between China and India that occurred in 1962. A disputed Himalayan border was the main pretext for war, but other issues played a role. There had been a series of violent border incidents after the 1959 Tibetan...

 in 1962. After the Nkrumah regime was overthrown Beijing withdrew around 200 Chinese aid workers and embassy staff. In the early 1990s China built Ghana's National Theatre as a reward for Ghana's diplomatic support during the Tiananmen Square protests
Tiananmen Square protests of 1989
The Tiananmen Square protests of 1989, also known as the June Fourth Incident in Chinese , were a series of demonstrations in and near Tiananmen Square in Beijing in the People's Republic of China beginning on 15 April 1989...

 in 1989. After Kufuor was elected president of Ghana in 2001 the PRC gave Ghana a US$2.4 million grant to renovate the theatre.

Official visits

The two countries have enjoyed a strong relationship since 1960 with high level official visits to China by then President Nkrumah and reciprocal visits to Ghana by Premier Zhou Enlai
Zhou Enlai
Zhou Enlai was the first Premier of the People's Republic of China, serving from October 1949 until his death in January 1976...

. In 2002 Ghana's President John Kufuor
John Kufuor
John Kofi Agyekum Kufuor was the second president of the 4th Republic of Ghana and Chairperson of the African Union...

 made a high level visited China and in 2003 China's President Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...

 visited Ghana. Chinese Premier Wen Jiabao
Wen Jiabao
Wen Jiabao is the sixth and current Premier and Party secretary of the State Council of the People's Republic of China, serving as China's head of government and leading its cabinet. In his capacity as Premier, Wen is regarded as the leading figure behind China's economic policy...

 visited Ghana on the second leg of his seven-nation tour of Africa in 2007.

In September 2010 Ghanaian President John Evans Atta Mills visited China on an official visit. China reciprocated with a visit in November 2011 by the Vice Chairman of the Standing Committee of the National People's Congress of China Zhou Tienong
Zhou Tienong
Zhou Tienong . In 1955 he began studying at the Peking University. During 1990s Zhou advanced politically, and now he is a Vice Chairman of the Standing Committee of the National People's Congress....

 who visited Ghana and met with Ghana's Vice President John Dramani Mahama
John Dramani Mahama
John Dramani Mahama is a communication expert, historian, writer, former Member of Parliament and Minister of State, and Vice President of the Republic of Ghana.-Early years and education:...

.

Economy

Since the 2000s the volume of Chinese trade and investment in Ghana has increased greatly. An indication of the importance China attaches to its economic relationship with Ghana in the West African region was the decision to open the forth office of the China-Africa Development Fund in Accra. Opened in November 2011 the office in Ghana focuses on the West African region for the fund.

Economic assistance

Premier Wen Jiabao's 2007 visit resulted in the signing of six agreements and a US$66 million Chinese loan to expand and upgrade Ghana's telecommunications network. Beijing provided a concessionary loan of US$30 million to support the first phase of a telecommunications project to link all ten regional capitals and 36 towns in Ghana with fiber optic cables.

Other Chinese aid projects include:
  • A total of US$43.5 million in development assistance to Ghana between 1964 and 1970 and has written off US$25 million of debt. Recently the China Export and Import Bank (Exim Bank) granted US$562 million loan for the construction of the US$622 million Bui hydro-electric dam
    Bui Dam
    The Bui Dam is an under construction 400 megawatt hydroelectric project at the Bui Gorge at the southern end of Bui National Park in Ghana. The project is a collaboration between the government of Ghana and Sino Hydro, a Chinese construction company...

    .
  • US$28 million interest-free loan for the construction of the 17km Ofankor-Nsawam road completed in 2006.
  • US$99 million interest-free loan for the construction of landing sites for fishing communities and the Afife rice project.
  • China has provided substantial technical support to Ghana with more than 700 Ghanaians having attended Chinese-funded training courses in education, trading, communication, energy, auditing, agriculture and fisheries operation.

Sino-Ghanaian trade

China is currently the second largest exporter to Ghana. In 2005 US$433.74 million worth of imports come into Ghana from China with Ghana exporting US$31.26 worth of exports. This reflects a sharp rise in two way trade between the two countries from $93.13 million in 2000 to $433.74 million in 2005. Most of China's foreign direct investment in Ghana is focused on manufacturing, construction, tourism, trading and services with total investments worth US$75.8 million in 2008. Of 283 projects that Chinese nationals and SOEs have investments in 97 are in manufacturing, 59 in trading, 48 in tourism, 44 in services and 15 in construction.

Security

In April 2007 the CPPCC's Chairman, Jia Qinglin
Jia Qinglin
Jia Qinglin is a senior leader of the People's Republic of China. He is the fourth ranking member of the Politburo Standing Committee of the Communist Party of China, the Chairman and Party secretary of the National Committee of the People's Political Consultative Conference. Jia's functions as...

, granted a US$30 million concessional loan for the Dedicated Communications Project to foster closer military and security ties between the two countries. This included a grant of a US$7.5 million for the construction of an office complex for Ghana's Ministry of Defense.
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