The financing package came to light after Beijing and Accra inked a Memorandum of Understanding for a funding facility worth up to $2 billion between a number of Ghanaian banks and the private sector led by the Association of Ghana Industries (AGI), and the Chinese government’s private sector development corporation.
Under the agreement, China National Building Materials and Equipment Import and Export Corporation (CNBM) will offer local banks funding at low-interest rates, in the single digits, and a minimum of 8yrs for repayment.
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Ghana Commercial Bank, Access Bank, Universal Merchant Bank and the Ghana Import and Export Bank have so far signed up to the compact.
The agreement was signed during a five-day visit to China by of Vice President Mahamadu Bawumia.
“The most exciting part of the financing is, the Chinese will provide a huge market access for most of the export commodities, which is expected to bring $2.5b revenue to Ghana annually," the National Coordinator of the 'One District, One Factory' Secretariat, Mrs Gifty Ohene-Konadu, said.
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“This clearly shows how the NPP government is poised to make the private sector the engine of growth of the Ghanaian economy.”
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