China will allocate $10 billion for the development of bauxite projects in Ghana

Moscow. June 29. INTERFAX.RU – China and Ghana signed a Protocol of intent about the development of the bauxite deposits of Ghana, which can lead to the creation of joint ventures worth $10 billion, according to the publication Africa News. The projects involve the construction of alumina refineries and rail infrastructure, said senior Minister yo Osafo-Maafo at a press conference in London after a visit to China.

“Money is allocated by China development Bank, the implementation of the project will involved other institutions, infrastructural departments in China, for example, China Railway,” said he. According to the Minister, during his visit to China was also signed protocols of intentions on investing about $2 billion in agricultural projects and other sectors of Ghana.

Economic growth in Ghana slowed down in 2014 because of the budget crisis and the collapse of commodity prices. Prior to that, GDP growth of more than 8% per year, mainly due to exports of gold, cocoa and oil.

President Nana Akufo-Addo, who started his duties in January of this year, has promised to restore economic growth and has developed a program of creating jobs in the private sector and agribusiness.

The government of Ghana expects to build 4 thousand km of Railways, of which 1.4 million – money of China, to connect the bauxite mines and alumina refinery, as well as to provide links to neighboring Burkina Faso.

The bauxite deposits in Ghana are estimated at 960 million tonnes. “If they produce and recycle only exports you can earn about $460 billion,” said the economic Advisor of the Vice-President of Ghana Gideon Boaco in an interview with local radio station Citi FM.