The volume of trade between Ghana and China reached $5.6 billion at the end of 2014, making the Asian country the single biggest trading partner with the West African country.
“Our economic and trade cooperation has achieved gratifying results, trade volume has surged from less than $100 million in 2000 to $5.6 billion in 2014,” Chinese ambassador to Ghana, Sun Baohong, said.
The achievements of our cooperation have not grown overnight
Ghana’s exports to China have also increased significantly, rising to 86.7 per cent, against the backdrop of decrease in total international trade.
Ghana’s exports to China hit $1.4 billion, a historical high, Baohong said at a reception on Thursday to mark the 55th anniversary of the establishment of China-Ghana diplomatic relations.
“All the indicators of China-Ghana cooperation are ranking high in China- Africa cooperation,” she noted.
“The achievements of our cooperation have not grown overnight; it is jointly cultivated and nurtured through mutual political trust.”
Ghana is facing one of its most serious economic crises in its history, registering a high budget deficit and rising public debt with a stockpile of payment of arrears as well as fast depreciation of the local currency – the cedi – which has lost more than 30 per cent of its value against the US dollar since January.
The precarious economic situation, amplified by erratic power supply, forced the government to seek an International Monetary Fund bailout of $918.8 million over a three year period.
Despite the country’s wobbling economy, Chinese enterprises say they still have confidence in the economy, while the China has also urged its companies to invest more in the West African country.
“In recent years, Ghana’s economy encountered some difficulties, while most of the foreign investors are pessimistic about Ghana’s economy and decrease investment to Ghana, Chinese enterprises still have confidence in Ghana’s market,” the Chinese embassy said.
“The Chinese government encourages Chinese companies to invest in fields such as energy, aviation, manufacturing and agriculture.”
China’s non-financial direct investment in Ghana reached $230 million in 2014, ranking second after the Republic of Congo among Chinese investment in the 24 mid-West African countries.
China’s investment in Ghana jumped from the 10th in 2013 to 5th in 2014.
“China is willing to keep close policy dialogue, improve cooperation mechanisms, exchange governance experiences and properly solve the existing problems through consultation and cooperation with Ghana,” Baohong said.