Ghana largest beneficiary of Guangdong investment
Smart grab
The Sunon Asogli
Power Plant is the Shenzhen Energy of China’s first and major investment in
Africa.
By
Edmund Smith-Asante, GUANGZHOU & SHENZHEN
 |
| The Asogli Power Plant co-founded by the Shenzhen Energy Group. |
Shenzhen Energy Company Limited’s ¥1.38 billion
investment in Ghana’s power sector makes the country the largest beneficiary of
investment from the Guangdong Province in Africa, officials from the province’s
foreign office have said.
She stated that the largest chunk of the Shenzhen
Energy Group’s investment in Africa totaling about US$250 million had been
committed to the Sunon-Asogli
power
plant project at Tema, therefore making it the highest investment by a Chinese
company in an African country.
Ms. Wen also said the second highest investment from
the province which was in Uganda’s rail transport totaled US$47.2 million. She
listed other African beneficiaries of investment from Shenzhen as Ethiopia and
Nigeria.
“Africa is a key area in Guangdong’s enterprises and
offers a ready market for Guangdong-made products as a result of political
stability,” she said.
Partner
 |
| Ms. Wen Xiaohuan, Deputy Director of Investment and Promotion (right) with other officials of the Foreign Ministry. |
Ms. Wen noted that China had always seen Africa as a
partner in industrial cooperation, hence Shenzhen’s outward foreign direct
investment (FDI) of US$2.98 billion comprising two per cent of the total from
China in 3,000 investments on the African continent by the end of 2015.
She added that by the end of 2016 Guangdong
accounted for 23.4 per cent of China’s import and export volume to Africa and
US$0.79 billion (19 per cent) of China’s total import from Africa, which
involved countries such as Ghana, Nigeria, Angola, Ethiopia and Morocco and
also accounted for more than 10 per cent of China’s trade volume.
For her part, the Associate Counsel General of the
Shenzhen Municipal People’s Office, Ms. Fuying Tan who hosted the journalists
to a dinner, said the first phase of the power project which was completed in
2010 produces 200,000 kw (15 per cent) of the power needs of the country.
She said when the second phase which started in May
2015 and is expected to produce 180,000 kw of additional power is completed
Ghana would be able to export power to Togo and other African countries.
Wind,
coal plants
Both officials alluded to plans for wind and coal
powered plants in addition to the gas-steam powered plant as components of the
energy project which is expected to produce a total of about 45 per cent of the
country’s energy needs when completed.
Ms. Fuyin added that Shenzhen also had a people to
people relationship with the city of Accra.
Background
The
Sunon-Asogli Power Plant, a joint effort by the Shenzhen Energy Group and the
China-Africa Development Fund was begun in 2007 as part of China's
"reaching-out" strategy of investing and expanding overseas.
The power
plant is the first built overseas by Shenzhen Energy and covers an area of
200,000 square meters.
The total
capacity of the plant will be 560 mw from gas-steam power generators, built in
two phases. The first phase of construction of two 100 mw gas steam generators
was completed and put into operation in 2010 to mitigate Ghana's urgent power
needs.
The first
phase of the project generates about 15 percent of the country's total
electricity and benefits more than 2 million residents.
The
company is also planning a US$700 million coal-fired power plant expected to
generate 700 mw of power and a wind farm in Ghana, but the former has received
some resistance from environmentalists and concerned citizens who believe a
coal plant would result in pollution of the environment.
Writer’s
email: edmund.asante@graphic.com.gh
FACT
Sunon Asogli Power Ghana Limited, an independent
power producer, is an initiative of the Agbogbomefia of the
Asogli State and currently the President of the National House of Chiefs, Togbe Afede XIV.
This
story was written on April 25, 2017
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