Cross-border investment at scale is a highly strategic affair, and one which isn’t approached lightly by the Chinese ruling party. They’re building everything from tech infrastructure and highways to healthcare facilities and plants for extracting and processing raw materials. To get a clearer idea of where all this could be going, we’ll be taking a strategic overview of the situation as a whole. Rather than debating the relative merits of specific projects and short-term targets, we’ll look at major industries in turn and see where they could be going in the longer term. Let’s get started.
Tech infrastructure will connect Ghana with the world
In the digital era you simply have to be connected with the rest of the world and able to get online with the minimum of friction. Gone are the days where the internet was basically for sharing photos and sending messages, today it is a thriving business economy in its own right.
Tech expansion in other parts of the world has already clearly shown that once the infrastructure is in place, bright ideas and transformative businesses will soon follow. Ghanian entrepreneurs will increasingly become able to find new ways to scale their businesses and sell services. It could be through online buying and selling of products, launch local comparison sites, or any number of scalable forms of network they can later charge users for. The key to all of this is making the underlying tech so accessible and ubiquitous that the bright ideas can be worked on like never before.
Transport infrastructure is essential for commerce
If you want to be able to sell a greater range of products faster and more efficiently than ever before, you need much more than just a high-speed internet connection. Getting the basics right with a reliable and resilient transport network is something that will ensure scalability is sustainable. Remember, this is not about simply increasing supply to heavily populated urban areas — it’s about lifting up the whole of Ghana. Transcontinental highways passing through the country will then help drive cross-border sales and commerce like never before.
Raw materials will power the main economy
Following on from the previous point about cross-border trade, we have the exciting prospect of a much easier flow of raw materials across Africa. For too long this has been a continent where many have felt the assets are being stripped and sent to all four corners of the world, with little or no benefit to Africans themselves. Continued Chinese investment in extraction and processing, set alongside transportation improvements, will surely change this sooner rather than later.
The idea here is not simply to get ore, precious metals, and other essential building blocks out of the ground at any cost and then take them abroad. In fact, it’s much more about being able to compete in terms of price, efficiency, and the reliability and quality of supply. This is what will put Ghana in an enviable position as we move towards the mid point of the century.
An enhanced reputation could boost tourism
With greater infrastructure and commerce comes the regulation that makes continued improvements possible. This in turn boosts public confidence, continues to reduce systemic corruption, and improves Ghana’s reputation on the global stage. Interestingly, this may achieve so much more than simply pulling other developed countries into the Ghanian sphere of influence as they seek to make investments and strike trade deals.
As Ghana comes to be seen as an increasingly open and transparent society, tourism can be expected to flourish like never before. The natural landscape and vibrant city locations speak for themselves, so all that is needed is the welcoming reputation to go with it. Before we know it we could well be in the middle of a Ghanian tourism boom that simply would have never been possible before the era of Chinese investment. It’s a classic example of how investment in the fundamentals other countries take for granted can give a country like Ghana the leg up it has needed for decades.
Healthcare will support all aspects of growth
To make all of the above truly sustainable and authentic, we need to see the improvements in quality of life that many assume flow inevitably from outside investment. While transportation, commerce, tourism, and all the rest are wonderful economic drivers, it is health that is the real cornerstone of a developed and equitable society. It’s also the case that health doesn’t automatically improve as a result of economic and industrial investment.
You only have to look at examples from the 19th century in America and Western Europe to see that health outcomes can be reduced when industrial growth outstrips healthcare capacity. What is different about Chinese investment in Ghana is that it is using the benefits of 21st century technology and understanding to take a far more holistic approach to investment. Sharing knowledge of the latest best practices, equipment, and training will ensure local doctors and healthcare facilities are able to lift millions to a higher quality of life.
Final thoughts
China’s belt and road initiative is certainly gathering pace and making a transformative difference in many areas of the African continent, not least of all Ghana. Whether it’s delivering the tech infrastructure used for everything from playing online casino games to building eCommerce businesses in the region, or more rudimentary services like roads and public healthcare, their approach is certainly far-reaching.
While it has always been difficult historically to predict international relations over an extended period of time, it will certainly be interesting to see how Chinese investment unfolds. Could we see a shift from a simple economic relationship to one of confidence and supply? Or perhaps even military support and mass migration with the opening up of new industries and employment opportunities? One thing is for sure, the future has never been brighter in this vibrant and progressive part of the world.
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