Went out to do some research (Ghana) before coming to the ping. This is a blessed country in terms of resources, and economy. Ghana’s resources are providing a suitable lifestyle for the population, and Ghana’s resources enable trade for an enriched lifestyle. Not certain why Ghana thinks borrowing money is a necessity.
As the State Department travel advisory will tell you, they have an infrastructure deficit. They need money to build new infrastructure and it is very difficult for African nations to raise money internally (and capital market rates tend to be prohibitively high).
So they are forced to go to the Chinese. Chinese rates are lower than Eurobonds and nobody, even America’s closest allies will willingly borrow such a volume of money from the World Bank.
You will soon start seeing many nations on Europe’s periphery borrowing from the Chinese.
As the State Department travel advisory will tell you, they have an infrastructure deficit. They need money to build new infrastructure and it is very difficult for African nations to raise money internally (and capital market rates tend to be prohibitively high).
So they are forced to go to the Chinese. Chinese rates are lower than Eurobonds and nobody, even America’s closest allies will willingly borrow such a volume of money from the World Bank (if they are alternatives).
You will soon start seeing many nations on Europe’s periphery borrowing from the Chinese.