Peace FM Online posted on 15 January 2020 an article titled "A Rocha Ghana, 20 CSOs Sue Ghana Gov't over Atewa Bauxite Mining."
The government of Ghana entered into a barter agreement with China to mine Ghana's bauxite in the Atewa forest reserve in exchange for $2 billion in infrastructure development. An environmental protection group, A Rocha Ghana, and 20 civil society groups have sued the government of Ghana in an attempt to stop it from allowing the Atewa forest reserve to be mined for bauxite.
Showing posts with label barter. Show all posts
Showing posts with label barter. Show all posts
Thursday, January 16, 2020
Tuesday, December 3, 2019
China-Africa Barter Deals
The Asia and the Pacific Policy Society posted on 3 December 2019 an article titled "Can Ghana Solve Developing Countries' Foreign Currency Problems?" by Lauren Johnston, School of Oriental and African Studies.
Ghana recently signed a $2 billion dollar line of credit with China for financing and building infrastructure in exchange for Ghanaian bauxite. This is effectively a barter arrangement that avoids the need to pay with foreign currency. The gamble is whether the agreed price for the bauxite rises or falls against the benchmark. The deal has similarities to earlier arrangements whereby Angola obtained lines of credit from China paid back by exporting oil to China.
The arrangement in Ghana may lead to other barter deals in Africa, but not all African countries have significant amounts of natural resources or other products desired by China.
Ghana recently signed a $2 billion dollar line of credit with China for financing and building infrastructure in exchange for Ghanaian bauxite. This is effectively a barter arrangement that avoids the need to pay with foreign currency. The gamble is whether the agreed price for the bauxite rises or falls against the benchmark. The deal has similarities to earlier arrangements whereby Angola obtained lines of credit from China paid back by exporting oil to China.
The arrangement in Ghana may lead to other barter deals in Africa, but not all African countries have significant amounts of natural resources or other products desired by China.
Monday, November 18, 2019
Russia, Africa, Arms, and Debt
Eurasia Review posted on 18 November 2019 a commentary titled "Russia, Africa and the Debts" by Kester Kenn Klomegah, independent researcher on Russia and Africa.
At the Russia-Africa summit in Sochi in late October, President Valdimir Putin reiterated a commitment made early this century that Russia had cancelled more than $20 billion in African debt accrued during the Cold War. Most of this debt resulted from loans for the purchase of arms.
According to the Stockholm International Peace Research Institute, between 2014 and 2018 Russia accounted for 49 percent of arms transfered to North Africa and 28 percent to Sub-Saharan Africa. Russia was the largest single source of arms for both regions. Russia's state arms exporter announced at the Russia-Africa summit in Sochi that Russia plans to transfer $4 billion worth of weapons to African countries in 2019, according to an article in the 24 October 2019 The Moscow Times. This raises the question whether African countries are accruing new debt or Russia is insisting on other terms before it transfers arms. There is some evidence that arms are being bartered for mining rights as reported by Eric Schmitt in an article tilted "Russia's Military Mission Creep Advances to a New Front: Africa" in The New York Times on 31 March 2019.
At the Russia-Africa summit in Sochi in late October, President Valdimir Putin reiterated a commitment made early this century that Russia had cancelled more than $20 billion in African debt accrued during the Cold War. Most of this debt resulted from loans for the purchase of arms.
According to the Stockholm International Peace Research Institute, between 2014 and 2018 Russia accounted for 49 percent of arms transfered to North Africa and 28 percent to Sub-Saharan Africa. Russia was the largest single source of arms for both regions. Russia's state arms exporter announced at the Russia-Africa summit in Sochi that Russia plans to transfer $4 billion worth of weapons to African countries in 2019, according to an article in the 24 October 2019 The Moscow Times. This raises the question whether African countries are accruing new debt or Russia is insisting on other terms before it transfers arms. There is some evidence that arms are being bartered for mining rights as reported by Eric Schmitt in an article tilted "Russia's Military Mission Creep Advances to a New Front: Africa" in The New York Times on 31 March 2019.
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