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RADP / Pulse Ghana  >  news  >  business

Ghana to develop stronger ties with China – Finance Minister

Magdalene Teiko Larnyoh

The Minister of Finance Ken Ofori Atta said the his ministry had scheduled their second meeting with the Chinese Embassy for Monday February 6, 2017 since President Nana Akufo-Addo was sworn into office.

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Ken Ofori Atta said this when he addressed the media in Accra on Sunday February 5, 2017.

He mentioned that the ministry had scheduled a meeting with the Chinese embassy on Monday February 6, 2017. He said that the meeting would be their second meeting with the Chinese embassy since President Nana Akufo-Addo was sworn in on January 7, 2017.

“We’re meeting for a second time with the Chinese Embassy on Monday, and we are trying to nail down and look at an enhanced relationship with China to see how they can support the direction in which we’re now going as we build a stronger economy”

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READ ALSO: Finance Minister likely to present 2017 budget on March 3

He also mentioned that the China Development Bank (CBD) loan would be high on the agenda during the meeting.

In 2011, the Attah Mills/Mahama government secured a $3 billion loan from the China Development Bank (CDB) which is state-owned, for major infrastructure development projects in Ghana.

Despite the controversy surrounding the terms and conditions of the loan agreement, it was approved by Parliament in August 2011.

READ ALSO: Here is government’s plan to stabilise the cedi

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But till date, out of the $ 3 billion loan facility, close to about $1 billion has been disbursed.

China-Ghana economic cooperation continues to gain momentum. In 2010 the bilateral trade surpassed US$2 billion for the first time. In 2013 it hit US$5.15 billion, ranking 3rd in 24 Mid & West African countries and 7th in Africa.

READ ALSO: Ghana will emerge stronger from deficit setback - Ofori Atta

Therein, Ghana’s export volume to China has seen a year-on-year increase of 86.7%, reaching US$1.2 billion in 2015. China has become one of the major investment source countries of Ghana with the non-financial FDI reaching US$1.5 billion.

The NPP government since assuming office has said that the budget deficit and government debt are much higher than had been expected. This has brought more unexpected pressure on public finances.

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Ofori Atta argued that this makes it important for the government to find alternative sources of funding which will not add to the public debt especially in a form of interest payments on loans.

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Magdalene Teiko Larnyoh Magdalene Teiko Larnyoh A feminist at heart and a lover of art. She loves to write on business, politics and health.

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