Promoting Production Capacity Cooperation and Industrialization through Energy Infrastructure Development: The Case of China-Ghana Partnership

Abstract

Although a number of studies have analyzed China-Ghana economic relations, an in-depth exploration of the role of the China-Ghana energy infrastructure development partnership in promoting production capacity and industrialization cooperation between the two countries is still lacking. In light of the Forum on China-Africa Cooperation (FOCAC) Action Plan (2016)’s commitment between China and African countries towards production capacity and industrialization cooperation, this paper examines the extent to which production capacity and industrialization cooperation between China and Ghana can be facilitated and promoted through energy infrastructure development in Ghana. Methodologically, secondary data sources are utilized. The paper argues that whilst China and Ghana already have a number of projects under implementation in the energy sector, there is scope for China and Ghana to increase and intensify the current levels of investment cooperation in energy infrastructure development to spur industrialization and economic development in Ghana. The paper therefore recommends strategic prioritization of investments in the energy sector, a shift towards more emphasis on renewable energy, improvement of investment climate through policy and regulatory framework review, and complementing Chinese investments through exploring alternative sources of local and international funds for energy infrastructure development.

Keywords

• energy infrastructure development
• industrialization
• production capacity
• China
• Ghana