Concern mounts over Ghana’s Chinese loan.
By Tasie Theodore
A recently contracted loan agreement between the governments of Ghana and China is raising fresh concern over the continent’s deepening level of debt and indebtedness to the Asian power as well as fears over what could happen in the future in case there is a sovereign default.
The current deal which permits the Chinese to retain and mine a 5 per cent stake in the nation’s bauxite region has also ignited concerns from environmentalists who argue that there is inadequate data on whether the necessary environmental impact assessment, EIA had been carried out before the bauxite mining agreement in particular was entered into.
As part of a pact which was agreed upon in 2018, China pledged to finance $2 billion worth of rail, road and bridge networks in return for 5% of Ghana’s bauxite reserves.