China’s $2 Billion Accord With Ghana Draws Disapproval From Activists

China’s $2 Billion Accord With Ghana Draws Disapproval From Activists

Reportedly, the Chinese administration has issued phase one of funding for an extensive road construction plan in Ghana as a part of a $2 Billion infrastructure agreement that presents Beijing with access to the nation’s reserves of bauxite—which is a vital source of aluminum. The agreement has drawn disapproval from political opposition, environmental activists, and global government investment associates, with the latest report from risk consultancy EXX Africa emphasizing a lack of lucidity and rising menace to debt sustainability. In the last week, a Chinese delegation directed by Sun Chunlan (Vice Premier) agreed to circulate the first installment of funding—valued $649 Million—for countrywide road construction projects after two-sided talks with Mahamadu Bawumia—Ghana’s Vice President.

The missions under phase one have been approved by Sinosure—China Export and Credit Insurance Corporation—with six more projects due to be established by year-end. As a part of a memo inked amid the two countries in the last year, China will finance $2 Billion worth of road, rail, and bridge networks, and in return, Beijing will be arranged access to 5% of Ghana’s bauxite reserves. This $2 Billion MPSA (Master Project Support Agreement) would see Chinese state-led Sinohydro—hydropower and construction firm—to gain access to the mineral, and is an element of a wider loan facility value $19 Billion. Reportedly, Bauxite is the main source of aluminum globally.

On a simile note, recently, it was stated that mining Ghana’s bauxite will bring in billions from China, but simultaneously it can also contaminate the water for 5 Million people. The world’s renowned forest reserve the Atewa is the resource of three main rivers that supply water to 5 Million people. It is also home to approximately 165 million tons of bauxite—which is a sedimentary rock utilized to produce aluminum products like kitchen utensils, aircraft parts, and beer cans. Ghana’s leaders plan to mine the bauxite—which they consider as the nation’s ticket to economic growth—due to a big-name partner China. Water experts and campaigners assert the environmental price is quite high as mining will infect the water.

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