Same same, but different: Ghana's Sinohydro deal as evolved 'Angola Model'?
- Ghana has gained international attention due to a controversial deal, which it has entered with the Chinese Sinohydro Corporation Limited. Sinohydro is investing $2 billion in infrastructure development, in return for refined bauxite over a 15-year period. When it comes to resource-backed loans between China and African governments, these types of cooperation are widely known as the Angola Model. Besides the criticism of resource-secured lending, in some African countries, these practices are declined, while in others it continues, but also evolve. For example in Guinea and in Ghana. This article takes a closer look at the structure and concerns regarding Ghana’s Sinohydro deal in comparison to the Angola Model. The main difference appears to be (a) the established para-state company charged with managing the extraction of bauxite and (b) the plans to develop an integrated bauxite–aluminum industry within Ghana. On the other side, environmental concerns regarding bypassing regulationsGhana has gained international attention due to a controversial deal, which it has entered with the Chinese Sinohydro Corporation Limited. Sinohydro is investing $2 billion in infrastructure development, in return for refined bauxite over a 15-year period. When it comes to resource-backed loans between China and African governments, these types of cooperation are widely known as the Angola Model. Besides the criticism of resource-secured lending, in some African countries, these practices are declined, while in others it continues, but also evolve. For example in Guinea and in Ghana. This article takes a closer look at the structure and concerns regarding Ghana’s Sinohydro deal in comparison to the Angola Model. The main difference appears to be (a) the established para-state company charged with managing the extraction of bauxite and (b) the plans to develop an integrated bauxite–aluminum industry within Ghana. On the other side, environmental concerns regarding bypassing regulations or possible pollution remain the same.…
