Journal of Asian and African Studies
1–23
© The Author(s) 2015
Reprints and permissions:
sagepub.co.uk/journalsPermissions.nav
DOI: 10.1177/0021909615599419
jas.sagepub.com
J A A S
Dam In, Cocoa Out; Pipes In,
Oil Out: China’s Engagement in
Ghana’s Energy Sector
Isaac Odoom
University of Alberta, Canada
Abstract
Ghana, like other African countries, suffers a huge infrastructure gap. In recent times China has become a
major bilateral source of investment in Ghana’s energy infrastructure. This article examines the strategic
importance of Chinese infrastructure investment in Ghana’s energy sector in recent times. The study is based
on field research conducted by the author in Ghana and on the analysis of semi-structured interviews with
Ghanaian policy makers, journalists, civil society organizations, academics and individuals. Additional data
were collected on some key projects China has been sponsoring in the energy sector. The paper suggests
that China has become a key partner in Ghana’s development efforts as its provision of infrastructural
projects soars and its involvement in Ghana’s economy grows. Yet China’s engagement presents a complex
dynamic given its dual role as financier of energy infrastructure and at the same time a competitor or seeker
of Ghana’s oil and other natural resources.
Keywords
Ghana, energy, infrastructure, China, cocoa, oil
Introduction
As with other African countries, China’s economic, political and cultural engagement with Ghana has
increased significantly in recent times. China is now Ghana’s single largest trading economy. In 2014,
bilateral trade between the two countries reached US$4billion and China’s Foreign Direct Investment
(FDI) to Ghana reached US$1.11billion the same year, accounting for 65.7% of total FDI to Ghana.
1
Today Ghana-China trade exceeds US$5billion.
2
However, China’s presence and involvement in
Ghana’s economy is not new; it goes back to pre-independence days.
3
As the first sub-Saharan
African nation to gain political independence, Ghana established official diplomatic relations with
China in July 1960. Since establishing formal relations, Ghana–China relations have been important
for both sides. Ghana occupies an important place in China’s Africa policy—both historically and
currently. As one of China’s closest allies in Africa during the independence struggle, Ghana served
as a focal point of entry for China’s influence on the continent, and was considered a training ground
Corresponding author:
Isaac Odoom, Department of Political science, University of Alberta, 10-16 Henry Marshall Tory Building, Edmonton,
AB Alberta, T6G 2H4, Canada.
Email: iodoom@ualberta.ca
599419JAS 0 0 10.1177/0021909615599419Journal of Asian and African StudiesOdoom
research-article 2015
Article
at UNIVERSITY OF ALBERTA LIBRARY on December 17, 2015 jas.sagepub.com Downloaded from