Masaryk university faculty of social studies



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MASARYK UNIVERSITY

FACULTY OF SOCIAL STUDIES

Department of International Relations and European Studies

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China in Africa: Case Study of Ghana in the Scope of Neo-colonialism

BACHELOR THESIS

Veronika Gregušová

Thesis Supervisor – Mgr. Jan Polišenský

UČO – 382630

Field of Study – International Relations, Environmental Studies

Matriculation Year – 2010

Tišnov, 2013

I do hereby solemnly declare that this bachelor thesis is a result of my independent work. All sources of information and bibliographical references used in the thesis have been cited accordingly in the text and in the bibliography.

Tišnov, 21st April 2013

Veronika Gregušová

Acknowledgements

First and foremost I would like to express my deepest sense of gratitude to my supervisor Mgr. Jan Polišenský, who assisted me during the course of writing. He offered me new perspectives and showed a deep knowledge of the subject matter.

It gives me great pleasure to acknowledge my friend Charanjit Basumatary, who supported me with his business education and provided advice in the chapters dedicated to economy.

My sincere thanks go to my family, which has continuously encouraged me in my studies.


Table of Contents





List of Abbreviations and Acronyms 5

Abstract 7

Key Words 7

Abstrakt 7

Klíčová slova 7

1 Introduction 8

2 Methodology 10

3 The Theory of Neo-Colonialism 12

3.1 Introduction 12

3.2 The Mechanisms of Control 13

3.2.1 Economic Control 13

3.2.2 Political Control 14

3.2.3 Control through Official Development Assistance 14

3.3 Forms of Neo-Colonialism in Africa 15

4 China in Africa 16

4.1 History of China in Africa 16

4.2 Forum on China-Africa Cooperation 17

4.2.1 New Strategic Partnership 17

4.3 Recent Chinese Engagement in Africa 18

4.3.1 Trade 18

4.3.2 Foreign Direct Investment 19

4.3.3 Official Development Assistance 20

4.3.4 Diplomacy and Political Cooperation 21

4.3.5 Military Cooperation 21

4.4 Chinese Motivations 22

4.5 Perception of Chinese Engagement in Africa 22



5 Ghana Case Study 24

5.1 China-Ghana Bilateral Relations 24

5.2 Trade 24

5.2.1 Imports 25

5.2.2 Exports 26

5.2.3 Analysis of Trade 26

5.3 Foreign Direct Investment 28

5.3.1 Value of Chinese FDI in Ghana 29

5.3.2 Chinese FDI in Extractive Industry Sector 29

5.3.3 Chinese FDI in Non-extractive Industry Sector 30

5.3.4 Analysis of FDI 31

5.4 Official Development Assistance 32

5.4.1 Official Development Assistance and Other Official Flows 32

5.4.2 Sectoral Analysis of Chinese ODA in Ghana 33

Energy Sector 33

Information and Communications Technologies Sector 34

Infrastructure Sector 34

Construction Sector 35

Industry and Agriculture Sectors 35

Health Sector 35

5.4.3 Analysis of ODA 36

5.5 Finance and Banking Sector 37

5.5.1 Analysis of Finance and Banking Sector 38

5. 6 Political Relations 39

5.6.1 Analysis of Political Relations 41

5.7 Military Relations 42

5.7.1 Analysis of Military Relations 43

5.8 Cultural Relations 44

5.8.1 Analysis of Cultural Relations 45

6 Conclusion 46

7 Bibliography 49

7.1 Primary Sources 49

7.1.1 Conference Papers 53

7.2 Secondary Sources 54

7.2.1 Books 54

7.2.2 Newspapers 56

7.2.3 Journal Articles 62




List of Abbreviations and Acronyms

ACET - African Center for Economic Transformation

ARB - African Research Bulletin

AU - African Union

BOC - Bank of China

CADFund - China Africa Development Fund

CDB - China Development Bank

CNOOC - China National Off-shore Oil Corporation

CCS - The Centre for Chinese Studies

DAC - Development Assistance Committee

DRC - Democratic Republic of Congo

EU - European Union

FDI - Foreign Direct Investment

FOCAC - Forum on China-Africa Cooperation

GAO - United States Government Accountability Office

GDP - Gross Domestic Product

GIPC - Ghana Investment Promotion Center

GIS - Ghana Immigration Service

IBRD - International Bank for Reconstruction and Development

ICT - Information and Communications Technologies

IMF - International Monetary Fund

MDGs - United Nations Millennium Development Goals

MFA - Ministry of Foreign Affairs of the People’s Republic of China

MOFCOM - Ministry of Commerce of the People's Republic of China

MW - megawatt

ODA - Official Development Assistance

OECD - Organisation for Economic Co-operation and Development

OOF - Other Official Flows

PRC - People’s Republic of China

SIPRI - Stockholm International Peace Research Institute 

SMEs - Small and Medium Enterprises

SOEs - State Owned Enterprises

TI - Transparency International

UG - University of Ghana

UN - United Nations

UN Comtrade - United Nations Commodity Trade Statistics Database

UNCTAD - United Nations Conference on Trade and Development

US - United States

USD - United States Dollar

WB - World Bank



WTO - World Trade Organization

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