Ghana Case Study of the $3 Billion China Development Bank Loan
The Institute of Economic Affairs (IEA), with support from the Center for International Private Enterprise (CIPE), conducted a case study of a loan negotiated between the Government of Ghana and the People’s Republic of China. This was a $3 billion loan agreement signed in 2011 and is to date the largest single loan ever contracted in the history of Ghana. The overall objective of the case study was to determine the impact of the loan on governance standards and the economy. Specifically, the paper assessed whether there were any violations of labour regulations and standards, environmental standards and public procurement laws. There is also an assessment of the economic impacts of the loan. This case study focused on a single loan negotiated between the Government Ghana (GoG) and the People’s Republic of China. The $3 billion loan agreement was signed in 2011 and remains the largest single loan ever contracted in the history of Ghana.