- Vice President Bawumia has stated that funds received from China are a joint venture and not a loan
- He said Ghana could earn up to $460bn by refining some of its bauxite deposits
Vice President Dr. Mahamadu Bawumia has addressed criticism saying that the government has yet again gone for a loan, allegations referring to the recent $19bn financial injection courtesy of the government of China.
Speaking at a China-Africa Joint Research and Exchange Program, Vice President Bawumia said that the recent $19bn financial injection popularly reported as a loan is in fact a joint venture. He said that the government realized that it could not borrow money in the traditional sense, but rather sought to "leverage" 5 percent of Ghana's bauxite to "unlock close to $20bn".
“We could not ask China to give us aid to finance this quantum of investment we needed. We could not borrow this quantum of money we needed, but we knew we had bauxite sitting in the ground.” said the Vice President, speaking at the Institute for Democratic Governance (IDEG) program themed “Building Resilient Industries and Infrastructure for Economic Transformation in Africa: The Role of China”.
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Vice President Bawumia stated that the Ghana currently possessed over 460 metric tons of Alumina, a white granular material produced from the refining of bauxite that trades at $400 per ton located at Nyinahin and Kyebi. He pointed out that the country could earn up to $184 million by producing alumina, but added that if Ghana could find the alumina and produce aluminium "then out of those same reserves we will get US$460billion” just from bauxite reserves.
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“So we have US $460 billion potentially sitting in the ground somewhere and we need US$ 20billion for our rapid economic transformation,” he continued.
Vice President Bawumia stated that government was looking for partners to refine the country's bauxite deposit, but that it wanted the mineral to be developed in Ghana.
"That is why we want to set up a refinery in Ghana so we can refine and export,” he said.
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