MOU: China to fund Ghana's bauxite project

The West African country Ghana has entered into a Memorandum of Understanding with China to develop its bauxite.

Ghana's senior minister Yaw Osafo-Maafo says the West African country has entered into an agreement with the economic global giant China to help develop Ghana's bauxite industry. 

Ghana's can boast of having one of the highest Gross Domestic Products in the West African sub region.

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With respect to natural resources, the West African country is diversified with rich resources such as gold, timber, cocoa, diamond, bauxite, and manganese.

In 2007, an oilfield was also discovered in Ghana.

The current of Ghana Nana Akufo-Addo has indicated his commitment to provide jobs by building a robust system that can see the private and rural sector thrive.

 

Addressing the press in London on the sidelines of the Ghana- China bauxite agreement , Yaw Osafo Maafo said Ghana aims at developing its bauxite into aluminium bauxite as well as its railways, hence the country will need about $10 billion.

However, some information like interest rates and terms have not been decided on.

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He adds that the fund for the projected will come from the Chinese Development Bank

Maafo also explains that the project is expected to be implemented by infrastructure agencies in the diaspora like China Railway.

The $10 billion fund from China is meant to construct a 1,400km out of a planned 4000km rail transport network.

 

The railway network will function as a connector between bauxite mines, production sites as well as link neighbouring Burkina Faso.

Apart from the bauxite agreement entered by both countries, there is also a second arrangement in which the Association of Ghana Industries could benefit from some $2 billion to be invested in agricultural projects and industries.

The West African country Ghana has entered into a Memorandum of Understanding with China to develop its bauxite. Read Full Story