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28.02.2005 General News

Ghana needs capital in-flows from China - Kufuor

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Accra, Feb. 28, GNA - President John Agyekum Kufuor on Monday said the economic relations between Ghana and China should go beyond financial assistance to capital in-flows from China. He said China's economy was robust and most developing countries such as Ghana see China as a nation in the South to form the bridge between developed and developing countries.

President Kufuor made the call when Dr Zhou Xiaochuan, visiting Governor of the Peoples' Bank of China, paid a courtesy call on him at the Castle, Osu. He said political relations between Ghana and China had been very cordial since Ghana's independence but economic relations had been slow. He, therefore, stressed the need to quicken the pace for stronger economic relations between both countries.

President Kufuor said South-South cooperation should be strengthened, adding, "Ghana wants to relate with China in a special way". He said since 2001 there had been landmark projects financed with interest-free loans from China and mentioned the Ofankor - Nsawam section of the Accra -Kumasi Highway where work was progressing.

President Kufuor said other areas China could offer more assistance were improvement in the rail system, irrigation facilities, the Bui Dam for hydroelectric power and irrigation. Ghana could also benefit from Chinese irrigation technology that would be applicable for irrigation on the Accra Plains for modernized agriculture and intensive rice production.

Dr Zhou on a West African tour said Ghana and China had very cordial relations especially on the economy and trade while Chinese investments in Ghana were improving. He said the Chinese appreciated the cordial ties and were optimistic that bilateral trade would increase. "There is a bright future for private investments from China in Ghana to boost trade."

Dr Zhou said it was the responsibility of the financial sector to maintain financial stability and commended the Bank of Ghana (BoG) for lowering inflation and moving in the right direction for West Africa Sub-Regional integration. He said the BoG should further undertake more support for trade and investments and announced that BoG and the Peoples' Bank of China were having discussions on a package to facilitate private investments from China. Dr Zhou called for more coordination between developing countries to make common inputs in deliberations at international institutions and organizations such as the World Bank and the International Monetary Fund

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