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THE DESCENT OF CHINA ON THE GHANAIAN
MARKET
A threat or challenge to Ghanaian economy?
By Kwesi Konadu, Ghanadot
THAT the GLOBAL economy has over the last few years been
growing at leaps and bounds is an understatement, when one
even takes a cursory glance at just China alone!
Indeed the Chinese economy itself has been growing at such a
fast rate that markets all over the world are beginning to
open up and like we say, “wise-up” in their presence.
China today, is not only the new kid on the block, but a big
kid and player in global business, pushing hard to ensure a
massive presence in Africa. First, is the recent tour of
about seven states by the Chinese leader, Mr Hu Jing Tao.
Last year the Chinese leader
under took a tour of some African countries in his bid to
foster good economic relations on the continent as a whole.
Africa, from emerging indications has become one of the
growing business destinations for Chinese products and
visits to even some of the smallest markets across the
continent show it.
Indeed, while some sectors of the economy and some
individuals may be happy with the Chinese influx because of
the benefits they derive, the Ghanaian economy, arguable
could be the loser though there have been other arguments in
favour of the influx.
The situation has become worrying and indeed necessitated
arguments bringing to the fore the issue of whether the
influx is a really a threat or a challenge to the economy.
Though the Chinese threat is real, Ghana is in a position to
match up to their products, considering the favourable
economic outlook of the country with her strong economic
growth and move to reduce poverty levels in the country.
In the words of the Managing Director and CEO of the United
Bank of Africa, UBA, (Ghana) Ltd, Nnamdi Okonkwo, “Ghana is
positioned to respond to the Chinese threat and must compete
for the opportunities available.” He therefore called on
Ghanaian businesses and the country as a whole to be
competitive enough to match the growing influx of Chinese
products into Ghana and Africa.
Mr. Okonkwo was leading participants in a discussion on how
the financial institutions can assist local businesses to be
competitive and match the growing influx of Chinese products
into Ghana and Africa.
One major factor that has propelled the Chinese to their
current economic status is their high sense of
responsibility and culture towards work and “we should begin
to partner them, instead of thinking of alienating them.
Therefore we should help grow Ghanaian businesses to match
up to the so called threat.
He noted that it was about time for some of the banks to
collaborate to enable them to provide the needed assistance
to the local industries to meet the competition, adding
that, when the basics are right there would be voluntary
mergers and acquisitions.
It has also been noted that when the Chinese had their
economic problems they confronted the situation from within
and as Ghanaians, we should begin to look from within to
match up to the influx of the Chinese products.
Some have argued that the competition is a worthy one and
must be embraced; with calls on industries to take advantage
of the stability of the economy. It is about time that
Ghanaians changed their outlook of the influx of the Chinese
products and rather see how we can take advantage of the
situation.
Another school of thought does not see the situation as a
threat but a challenge that we are bound to face and must
therefore find out how best we can confront it.
It is important for Ghanaians to learn to grow their
businesses by re-investing their profits rather than
spending unnecessarily. Africa must position itself for the
next big thing that could happen to them in terms of
economic revolution as well as the advantage we can get from
the Chinese influence.
It has also been observed that the investment code of the
country specifies the area for investors to venture into,
however, its compliance and application is not the best and
must be looked at again to ensure that we as a country are
not left behind in the scheme of things.
Kwesi Konadu, Accra, April 6, Ghanadot
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