Impact Of Sino-Africa Economic Relations On The Ghanaian Economy

Africa is a Continent endowed with enormous natural resources that has attracted theattention of the west in particular; and has been described as a base for development ofwestern Countries.In the twenty first century, China has emerged as a viable alternative toAfrica, in trade and Economic Corporation. China-Africa trade also known as Sino-Africatrade and relationship has increased tremendously over the last two decades especially.Themain components of Sino-African relations have been in areas including: Bilateral trade,Investments and Aid.Sino-African relations have been under scrutiny with some accusingChina of pursuing an aid for oil/resource policy and even neo-colonial hidden motives.Yet there are some who question the impact of relations on local industries.The Study focuses on of the most promising economies in Africa: Ghana. Sino-Ghana economic relations have a long standing history.The study aims to take cursorylook at Sino-Ghana trade relations, the opportunities and challenges for the GhanaianEconomy; especially in the Textile and Mining sectors, which are crucial sectors, andwhat must be done to maximize the benefits of the engagement in Ghana’s quest foreconomic development, as well for China, as it emerges as a global superpower.The textileindustry of Ghana goes beyond economic issues and extends to the very soul of the peopleand represents identity to the people; as shown by the introduction of the National Fridaywear programme, introduced by the Former President of Ghana; John Kuffour’sAdministration.To this end the study employs qualitative case study approach; basing on theories oftrade, International relations: realism, dependency, neocolonialism, basing on availabledata from various sources, as well as field research, among others to provide a deeperunderstanding Sino-Ghana trade.The study aims to address the central question: the impact of Sino-Ghana Economicrelations on the textiles and mining sectors of the Ghanaian Economy, whilst notneglecting other subsidiary issues such as the content and nature of trade, investment andaid, as to whether the relationship is complementary or competitive in nature.It also looks at the Ghana government’s policy of promoting the textile and mining industries, owing tothe fact that some observers claim that the influx of Chinese textiles is negatively in favorof the Ghanaian textile sector for example. Besides, the inflow of Chinese investors intothe mining sector is causing havoc.The analysis of data aims to prove objectively that the claim on China in theGhanaian textile and Mining industries is exaggerated and there exist local factors thatwork negatively against the sectors as well; such as high cost of production andsmuggling, as well as poor government policies, and moreover the problems in the textileindustry for example started before the Chinese textile influx, and that the government ofGhana needs to address its internal problems basing on the recommendations submitted inthis study.The thesis reveals, of course some fears for Ghana’s development agenda, includingtrade deficits, outcompeting local firms in the textile sector, and the claim of Chinese notstrictly following environmental laws.On the other hand, the engagement has resulted inemployment in the same textile industry for example, infrastructural projects and fundingfor Ghanaian Students in Scholarships and training opportunities for Ghanaians in China.