Chinese Resource-Backed Infrastructure Financing Investments: Comparing Governance in Guinea and Ghana

Image: Flickr, Asian Development Bank
Image: Flickr, Asian Development Bank

As part of a larger trend of Chinese natural resources—for—infrastructure (RFI) agreements in Africa, Guinea and Ghana signed multi-billion-dollar agreements in 2017 and 2018, respectively, tied to their rich bauxite reserves, the primary source of aluminum.

Though the agreements pose differing risks to the two countries, both countries face similar governance issues in their relationship with China and their respective mining sectors. Our research examines and compares these governance issues and the social and environmental dilemmas linked to them through desk research and 25 virtual interviews with mining sector stakeholders in the two countries. Our analysis suggests that improving transparency, regulatory enforcement, and feedback mechanisms between local communities, firms, and government can ensure that mining investments through naturalresourceforinfrastructure agreements are socially, economically, and environmentally sound.

1 Jan 2021