China loan is win-win for both countries, says Dr Bawumia

Vice President Dr. Mahamudu Bawumia says the $15bn facility agreement with China is a win-win situation for both Ghana and China.
According to Dr. Bawumia the facility is not a loan as been described by critics but rather a joint venture that will inure to the benefit of the two countries.

Dr.  Bawumia entered into the agreement on behalf of Ghana with China during a recent visit to that country, which has become a preferred destination for most developing nations, including Ghana, in desperate need of money to develop infrastructure.  The amount is to help improve key sectors of the economy, especially the One District One Factory concept as well as roads and education.  But the  Minority in Parliament believes the amount will add to the existing debt stoke and should not be encouraged. NDC MP for Bolgatanga Central Isaac Adongo, who was the first to raise reservations on behalf of his party, said the amount is "reckless" and should not be entertained. 

 “We are dealing with a country where borrowing $1bn of Eurobond was described by Bawumia himself as very reckless borrowing and he put in perspective the GDP ratio when we were borrowing just $1bn. In the 2017 budget by this government, the debt to GDP of 72% was vilified as the worst this country could ever have, now to add $19bn of an additional loan in such a short period will push our debt to GDP to the region of 120% and 130% of GDP. That is the worst that you can find in the world,”

But speaking at the China-Africa Joint Research and Exchange Programme on the theme: Building resilient industries and infrastructure for Economic Transformation in Africa: The Role of China, Dr. Bawumia said the country is offering less than 5% of its bauxite reserve for this joint venture.

 

"This agreement will not add to our debt stoke but will rather help boost development because it is a win-win venture," he added.

He added that the same opportunity is there for any other country who wants to do business with Ghana. He also accused the minority of misinforming the public about the loan, and insisted the money will go into the intended areas and not the persona pockets of individuals.