As China’s Belt and Road Initiative enters its second decade, China’s plans have shifted away from expensive infrastructure projects to smaller and more nimble investments. This throws up challenges and opportunities for Ghana, writes Matthew Rochat.

World leaders from over 140 countries, including a delegation from Ghana, gathered in Beijing on 17 October for the third Belt and Road Forum for International Cooperation which marked the 10th anniversary of the Belt and Road Initiative (BRI). President Xi outlined his vision for the BRI as it enters its second decade.

Financing is beneficial no matter where it comes from, whether China, the United States, or elsewhere. This is particularly true of infrastructure investment in Ghana, as well as other parts of Africa, where closing the “infrastructure gap” will be vital to unleashing growth and development in the coming decades. Compared to other major economies, China has simply done a better job of delivering on major infrastructure investment projects.

In Ghana, this has involved financing road construction, rural electrification, vocational training centres, maritime ports, coastal fishing sites, digital infrastructure, renewable energy, and more. According to the Boston University Global Development Policy Center’s China Loans to Africa Database, the figure amounts to £1.96 billion of financing by China on projects in Ghana since the initiation of China’s BRI in 2013.

However, in Ghana, there is an understanding that money typically comes with strings attached, whether economic, political, or otherwise. Yet, for many Ghanaians, the risks of Chinese financing are well worth the potential rewards.

Deborah Bräutigam, Meg Rithmire and Ajit Singh have devoted much time and energy to debunking false media narratives of “debt trap diplomacy.” Allusions to mafia-style extortion by Beijing, twisting the arms of political leaders in indebted countries, are more myth than reality.

China has, nevertheless, proven to be a formidable negotiator in debt discussions. Though in some rare cases, China has been willing to forgive the debts of African countries, Chinese representatives have demonstrated an overwhelming preference for extending loan repayments rather than accepting write-offs or financial haircuts. Ghana is currently in debt restructuring talks with China in the wake of a £2.45 billion IMF relief package.