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Business News Fri, 30 Jun 2017

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$10bn China loan will create 100,000 jobs – Maafo

Ghana can create 100,000 jobs from a $10 billion loan agreement with China, the West African country’s Senior Minister Yaw Osafo Maafo has said.

Vice President Dr Mahamudu Bawumia revealed on Sunday June 25 that the Chinese government had committed a sum of US$15billion to support developmental projects in Ghana.

He explained that an additional US$4billion was expected in July 2017 aside from the US$2 billion in support of government’s One-District-One-Factory project announced on Wednesday.

Dr Bawumia indicated that Ghana would leverage its resources in the partnership with the Chinese government with the funds expected to be used to boost the economy. He underscored that the China Exim Bank and other partners were committed to supporting the country.

The funding partnership with China, according to the Vice President, is not based on the traditional model of borrowing and aid. The new model, he noted, is based on the bargaining power of the country’s natural resources such as the 2.8 billion metric tonnes of iron ore deposits, 960 million metric tonnes of bauxite, 413 million metric tonnes of manganese and not to mention gold and cocoa.

China is expected to sink $10 billion into Ghana’s bauxite industry through the deal.

The main opposition NDC, however, has bastardised the deal and accused the Akufo-Addo government of hypocrisy.

However, speaking to the BBC, Mr Osafo Maafo said: “We are more than satisfied that this [deal] will benefit the ordinary Ghanaian because this will create employment for the ordinary Ghanaian. The creation of employment out of the exploitation of natural resources can only be beneficial to our people.”

The former Finance Minister emphasised: “If you have $460 billion worth of item and you need $10 billion to access it and create employment in the region of about 100,000, then what you must be mindful of is the price at which you barter this product for the 10 billion.”

Source: Class FM

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