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THE CHINA-GHANA for SADA COOPERATION FRAMEWORK: Enabling the Comprehensive Development of the Northern Savannah Ecological Zone of Ghana

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THE CHINA-GHANA FOR SADA COOPERATION FRAMEWORK: Enabling The Comprehensive Development of The Northern Savannah Ecological Zone Of Ghana. August 2016 Savannah Accelerated sada Development Authority THE CHINA-GHANA FOR SADA COOPERATION FRAMEWORK: Enabling The Comprehensive Development of The Northern Savannah Ecological Zone Of Ghana. August 2016 Table of Contents LIST OF PICTURES Page ‐ iii ABBREVIATIONS Page ‐ iv EXECUTIVE SUMMARY Page ‐ 1 1.0 CHAPTER ONE: OUR COMMON INTERESTS, OUR MUTUAL NEEDS ‐ WHAT THE REPUBLIC OF GHANA AND THE SADA ZONE REPRESENT Pages 2 ‐ 5 1.1 What the China‐Ghana for SADA Cooperaon Framework is based on 1.2 The Republic of Ghana – (Gateway to Africa) 1.3 Mandate of SADA 2.0 CHAPTER TWO: CHINA, THE GLOBAL POWERHOUSE AND AFRICA'S STRATEGIC PARTNER Pages 6 ‐ 8 2.1 Foundaons of China‐Africa Relaons 2.2 Forum on China – Africa Cooperaon (FOCAC) 2.3 Ghana – The African Union (AU) and Regional Integraon 3.0 CHAPTER THREE: CHINA – GHANA BILATERAL RELATIONS Pages 9 ‐ 12 3.1 Diplomac Ties between the People's Republic of China (PRC) and the Republic of Ghana 3.2 Economic Cooperaon Between the People's Republic of China and the Republic of Ghana 3.3 People to People Exchanges Between the People's Republic of China and the Republic of Ghana 3.4 Ghana and the 21st Century Marime Silk Road 4.0 CHAPTER FOUR: THE MECHANISMS AND FRAMEWORK FOR THE CHINA – GHANA FOR SADA COOPERATION FRAMEWORK Pages 13 ‐ 22 4.1 SADA Zone's Comparave Advantages (Specific Assets of The Zone) 4.2 Pillars of the Strategic Cooperaon Framework 4.2.1 PILL AR ONE: Win‐win Economic Cooperaon 4.2.2 PILLAR TWO: The Cooperaon for Industrialisaon 4.2.3 PILLAR THREE: Cooperaon under the China‐Africa Agricultural Modernisaon 4.2.4 PILLAR FOUR: Cooperaon in Infrastructure Development 4.2.5 PILLAR FIVE: Cooperaon in Minerals, Mining and Value Addion 4.2.6 PILLAR SIX: Cooperaon in Trade, Finance and Investment Facilitaon 4.2.7 PILLAR SEVEN: Cooperaon in Poverty Reducon 4.2.8 PILLAR EIGHT: Cooperaon in Health, Educaon and Skills Development 4.2.9 PILLAR NINE: Cooperaon in People‐People and cultural exchange 4.2.10 PILLAR TEN: Social Development Cooperaon 4.2.11 PILLAR ELEVEN: Cooperaon in Green Economy and Environmental Sanitaon 5.0 CHAPTER FIVE: THE FINANCING MECHANISMS OR MODELS Pages 23 ‐ 25 5.1 ECOWAS Bank For Investment And Development (EBID) 5.2 The Savannah Investment and Development Bank 5.3 Ghana Infrastructure Investment Fund i Table of Contents 5.4 Ghana Exim Bank 5.5 Industrial Bank of Ghana led by the Associaon of Ghanaian Industries 5.6 Nature of financing partnerships 6.0 CHAPTER SIX: IMPLEMENTATION MODALITIES Pages 26 ‐ 27 6.1 Establishment of a China representave office 6.2 Joint SADA‐China working group 6.3 Coordinaon with Ghana Investment Promoon Centre (GIPC) and other agencies 6.4 A SADA‐China Business Plaorm 6.4 Ensuring orderly and mutually beneficial access to land and government incenves to promote investments and development. APPENDIX THE SAVANNAH IN CONTEXT Pages 28 ‐ 33 Brief Summary Administrave Boundaries Irrigaon, Hydropower And Renewable Energy Ghana and SADA at a glance Development Financing Hydrographic Network of the SADA Zone ii List of Pictures PIC 1.1 FORUM ON CHINA AFRICA COOPERATION Page ‐ 6 PIC 1.2 CHINA INTERNATIONAL FAIR FOR INVESTMENT AND TRADE Page ‐ 14 iii Abbreviations ACP AFRICAN CARRRIBEAN AND PACIFIC AGI ASSOCIATION OF GHANA INDUSTRIES AU AFRICAN UNION BOT BUILD OPERATE AND TRANSFER BRICS BRAZIL RUSSIA INDIA CHINA SOUTH AFRICA CAAMS CHINESE ACADEMY OF AGRICULTURAL MECHANISATION SCIENCES CAD CHINA AFRICA DEVELOPMENT FUND CADP COMPREHENSIVE AFRICA DEVELOPMENT PROGRAM CAPFA CHINA AFRICAN PEOPLES FRIENDSHIP ASSOCIATION CDB CHINESE DEVELOPMENT BANK CIFIT CHINA INTERNATIONAL FAIR FOR INVESTMENT AND TRADE COMESA COMMON MARKET FOR EAST AFRICAN COUNTRIES COSSS COMMUNITY OF SAHEL SAHARA STATES CPAFFC CHINA PEOPLES ASSOCIATION FOR FRIENDSHIP WITH FOREIGN COUNTRIES DCH DAH CHONG HONG ECCAS ECONOMIC COMMUNITY OF CENTRAL AFRICAN STATES ECOWAS ECONOMIC COMMUNITY OF WEST AFRICAN STATES EBID ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT EDAIF EXPORT DEVELOPMENT AND AGRICULTURAL INVESTMENT FUND EFCL EXPORT FINANCE COMPANY EU EUROPEAN UNION FOCAC FORUM ON CHINA AFRICA COOPERATION FXXC FUXING XIAOCHENG TECHNOLOGY COMPANY GIIF GHANA INFRASTRUCTURE INVESTMENT FUND GHACHIFA GHANA CHINA FRIENDSHIP ASSOCIATION GDP GROSS DOMESTIC PRODUCT GWDP GREAT WESTERN DEVELOPMENT PROGRAM IGAD INTERGOVERNMENTAL AUTHRORITY ON DEVELOPMENT ICBC INDUSTRIAL AND COMMERCIAL BANK OF CHINA JMET JIALING MOTOR LK LK INTERNATIONAL CO.LTD MOU MEMORANDUM OF UNDERSTANDING iv Abbreviations - cont. MOFA MINISTRY OF FOOD AND AGRICULTURE MW MEGA WATTS NSEZ NORTHERN SAVANNAH ECOLOGICAL ZONE OAU ORGANISATION OF AFRICAN UNITY PRC PEOPLES REPUBLIC OF CHINA PPP PUBLIC PRIVATE PARTNERSHIP RECS REGIONAL ECONOMIC COMMUNITIES SADA SAVANNAH ACCELERATED DEVELOPMENT AUTHORITY SADC SOUTHERN AFRICAN DEVELOPMENT COMMUNITY UN UNITED NATIONS UDS UNIVERSITY FOR DEVELOPMENT STUDIES VBA VOLTA BASIN AUTHORITY ZTE ZHONGXIAN TELECOMMUNICATION EQUIPMENT v EXECUTIVE SUMMARY The Savannah Accelerated Development Authority (SADA) is a government Regional Development Authority set up by law (Act 805, 2010) to bring about rapid and fundamental development of the northern half of Ghana (54.4% of the surface area of Ghana ), which is located in the Savannah Ecological Zone ‐ also alternavely called the SADA Zone. This document proposes a “China‐Ghana for SADA Cooperaon Framework”, couched within the China‐Africa Cooperaon Strategy recently outlined at the sixth (6th) summit of the Forum on China‐Africa Cooperaon (FOCAC) held in Johannesburg, South Africa. The “China‐Ghana for SADA“ Cooperaon framework (herein outlined) aims to be consistent with the FOCAC Declaraons based on the principles of economic cooperaon for win‐win results, mutual trust, cultural exchanges and mutual learning between Chinese and African civilisaons which are among the oldest in the world. The “China‐Ghana for SADA” cooperaon captures the spirit of “China‐Africa Progressing together for win‐win and shared development”. This principle is highly relevant for the Savannah Zone of Ghana, which is made up of more than 54% of the surface area of Ghana, comprising the Upper East Region, the Upper West Region, the Northern Region and the northern parts of the Brong Ahafo and Volta Regions. In spite of being home to the oldest kingdoms in West Africa, the Savannah regions remain relavely less developed and have higher indices of poverty. The Volta River basin and much of the Volta Lake, provides a water source for transport, agriculture and hydropower. The Savannah Zone contains millions of hectares of land suitable for commercial agriculture and is well served with minerals including potenal for hydrocarbons. All this notwithstanding the area is deprived of essenal development, including infrastructure and economic development. This leads to the area recording highest levels of poverty and underdevelopment in Ghana. SADA was established to deal with this relave neglect and deprivaon compared to the southern parts of the country. SADA's approach is to fundamentally transform the economy of this area over the long term by addressing public investment in infrastructure and aracng private investment into business, producon and trade. The rapid development of the People's Republic of China, the creaon of the Great Western Development Programme of China to address similar condions of underdevelopment, and China's success in transforming dry land areas into places of high producvity holds great lessons for the transformaon of the Northern Savannah of Ghana. “The China‐ Ghana for SADA Cooperaon Framework” document outlines a strategic approach and concrete programs and project ideas around which to transform the Ghanaian Savannah based on the overarching principle of a win‐win, equitable and mutually advantageous economic, social and cultural cooperaon between China and Ghana. The China-Ghana for SADA Cooperation Framework 1 # .0 OUR COMMON INTERESTS, OUR MUTUAL NEEDS Chapter 1 One WHAT THE REPUBLIC OF GHANA AND THE SADA ZONE REPRESENT 1.1 What the China‐Ghana for SADA Cooperaon Framework is based on This document outlines the framework for mutual cooperaon between the Republic of Ghana and the Peoples Republic of China for the development of the Northern Savannah Ecological Zone (NSEZ) of Ghana. This cooperaon framework is herein referred to as “The China‐Ghana for SADA Cooperaon Framework”. The Savannah Accelerated Development Authority (SADA), is a government Regional Development Authority, with the responsibility to oversee the comprehensive and accelerated development of the poorer northern half of Ghana. Cooperaon to develop the Savannah zone will further strengthen the exisng bond between the Republic of Ghana and the People's Republic of China for the cultural, polical and socio‐ economic development of the two naons. The China‐ Ghana for SADA Cooperaon framework outlined in this document also draws from the principles and ideals underpinning China‐Africa Cooperaon outlined most forcibly in the recent Johannesburg Declaraon of the 6th Ministerial conference of the Forum on China‐Africa Cooperaon on the theme “China‐Africa Progressing Together: Win‐Win Cooperaon for Common Development.” The framework takes into consideraon the upgrade to a comprehensive, strategic and cooperave partnership and follows the principles detailed in the “five major
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