Ghana has announced a strategic partnership with Southern China Airlines to provide aviation services for the country and the West African region. The deal, which was revealed by Finance Minister, Ken Ofori-Atta, after his recent trip to China, will enable direct flights from Accra to Guangzhou, facilitating mobility and commerce between the two countries and the broader West African market.
The partnership is part of the Ghana Mutual Prosperity Partnership, a government initiative that aims to enhance the business environment and foster collaboration with Chinese investors in various sectors, such as green energy, electronic vehicles, and bauxite production. The Finance Ministry said in a statement that the partnership with Southern China Airlines will serve as a follow-up to the maiden working sessions of the initiative, where the government met with Chinese businesses operating in Ghana.
The statement also highlighted some of the notable outcomes of the trip to China, including a strong commitment from the Chinese authorities to help ensure the progress of the debt treatment Memorandum of Understanding with the Official Creditor Committee. The Finance Minister said that among the private engagements on green energy, Sunon Asogli, a Chinese power company, committed to doubling their energy production in Ghana by focusing more on renewable energy sources. He added that the delegation further explored collaboration between Ghana and China on the production of electronic vehicles spearheaded by Huawei and Sunon Asogli.
The Finance Minister also touched on the macroeconomic strength of the nation, saying that “today, with the successful completion of the first review of Ghana’s International Monetary Fund-supported Post-Covid 19 Programme for Economic Growth, there is the strong recognition by all that we are in a stronger position than before.” He cited the decline in inflation, the strong performance of the cedi, and the higher-than-expected GDP growth as indicators of the economic recovery.
The partnership with Southern China Airlines is expected to boost the aviation sector in Ghana and the West African region, which has been hit hard by the pandemic and travel restrictions. According to the International Air Transport Association (IATA), African airlines saw a 68.5% drop in passenger demand in 2023, compared to 2019 levels, and a 61.2% decline in capacity. The IATA also projected that the African aviation industry will lose $1.8 billion in 2024, and called for more government support and coordination to ensure its survival and recovery.
The deal with China is not the first of its kind for Ghana, which has been expanding its air connectivity with other countries and regions in recent years. In 2023, Ghana signed an air service agreement with Canada, allowing direct flights between the two countries. Ghana also has similar agreements with other countries such as Morocco, Rwanda, Namibia, and Jamaica. The government has also invested in upgrading the infrastructure and facilities of the Kotoka International Airport, the main gateway to the country, and the regional airports in Kumasi, Tamale, and Ho.
The partnership with Southern China Airlines is seen as a strategic move by Ghana to position itself as a regional hub for aviation and trade, as well as to strengthen its ties with China, which is one of its major trading partners and investors. China is Ghana’s largest source of imports and its second-largest export destination, according to the World Bank. China is also involved in several infrastructure and development projects in Ghana, such as the Tema Port expansion, the Atuabo gas plant, and the Jamestown fishing port.
Source: Business Ghana
