UPDATE: Ghana Vice President says fund received is for a Chinese bauxite JV not ‘loan’

Ghana vice president Dr. Mahamadu Bawumia came forward to defend and clarify the receipt of US$19 billion funds from China; he said the funds receipt was actually for a bauxite joint venture with China and not a loan.

Ghana’s decision to tie up with China to leverage its rich bauxite resources has recently drawn criticism from a section of the industry. The two-way benefits that this venture would provide to both the countries have been viewed differently.

Dr. Bawumia said the cooperation is going to be a win-win situation for both Ghana and China. Ghana could earn up to $460 billion by refining some of its bauxite deposits and supplying to China where there is a huge demand for the ore.

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The Government of China has made a financial injection amounting to US$19 billion in Ghana. This is aimed at developing the bauxite industry in the country. Ghana is also said to be mulling mortgaging the bauxite deposits in Atiwa forest to China, a decision which may have far-fetched impact beyond economic development.