As Ghana deepens its engagement with major global partners, such as Japan and China, the nation stands at critical crossroads — between leveraging foreign partnerships for genuine development and opening its economy too widely to external control.
In recent months, President John Dramani Mahama has embarked on high-profile visits to Tokyo and Beijing, signing multiple cooperation agreements aimed at reviving infrastructure, boosting agriculture and driving industrialisation. These initiatives, if managed transparently and prudently, could fast-track Ghana’s economic transformation.
However, they also demand careful scrutiny. For a developing economy still battling trade imbalances and weak local manufacturing, the wrong set of trade concessions could easily turn opportunity into dependency. Ghana’s quest for progress must, therefore, be matched with vigilance and ensuring that foreign investment strengthens domestic capacity rather than displacing it.
According to a Daily Graphic report dated August 25, 2025 President Mahama secured a package of new agreements with Japan covering infrastructure, agriculture, technology and industrialisation, following his participation in the Ninth Tokyo International Conference on African Development (TICAD-9) held in Yokohama from August 20 to 22, 2025.
The Minister of Foreign Affairs and Regional Integration, Mr. Samuel Okudzeto Ablakwa, confirmed these outcomes in a statement. He explained that the infrastructure package includes the revival of the Volivo–Dorfor Adidome Bridge project across the Volta River, with both governments committing to provide the required additional funding.
On urban transport, he mentioned that work on the Kumasi Inner-City Ring Road Project will commence soon. A new automotive industry agreement has also been reached with Toyota, under which Ghana will become the company’s West African hub.
Equally significant is a space cooperation agreement signed with Japan to advance Ghana’s use of satellite technology and space science for national development. In the area of youth training, Japan has agreed to support a programme to train 300,000 Ghanaian youth in artificial intelligence, biotechnology, modern agriculture, green transition and technology entrepreneurship.
Both nations also committed to a food security programme that will boost rice production through scientific research, while a US$100 million facility has been secured to finance new agricultural projects. Japan has further identified Ghana as a key partner under its US$1.5 billion Africa industrialisation initiative.
Following that visit, President Mahama’s trip to China yielded additional support. The Ghana Broadcasting Corporation (GBC) reports that Ghana secured a 200 million RMB grant from President Xi Jinping for future development projects. This comes in addition to an earlier 200 million RMB grant already dedicated to the construction of the Aflao market, bringing the total Chinese support this year to 400 million RMB.
Mr. Ablakwa further disclosed that both countries agreed to finalise a 0% tariff agreement by October 28, 2025 making Ghana the second African country to enjoy such trade privileges with China. This is expected to boost bilateral trade, which exceeded US$11.8 billion in 2024.
President Mahama also advocated for special support for African women entrepreneurs under China’s US$100 million women empowerment package and capacity-building initiative for 50,000 women.
The Chronicle welcomes these developments and congratulates President Mahama for his diplomatic achievements, which promise to drive growth across key sectors of the economy. However, we urge the Jubilee House to publish the full details of these agreements for public scrutiny.
This call for transparency is not born of cynicism but of national prudence. Foreign grants and trade pacts often come with conditions that may disadvantage local industries. Ghana must avoid agreements that open its fragile economy to excessive foreign competition, undermining our drive to add value to raw materials and build a self-reliant industrial base.
Earlier this year, The Chronicle published a story titled – “Liberalisation is a Threat to Local Industries… KsTU Lecturer Cautions Jubilee House as Global Debt Crisis Deepens.”
In that piece, Dr. George Asumadu, a senior lecturer in Economics at the Kumasi Technical University, warned against unchecked trade liberalisation, arguing that it could cripple domestic industries and deepen economic dependence.
“It is not everything that you have to open your borders for and allow an influx of goods, especially where you have the capacity to produce them internally. If you have that capacity, it is better to create opportunities for local entrepreneurs,” he told The Chronicle in an interview in Kumasi.
In view of this, we reiterate our call for transparency in the Japan and China agreements. Ghana’s long-term prosperity depends not only on political diplomacy but also on economic prudence. Political power may come easily, but economic independence requires vision, discipline and deliberate protection of local enterprise.
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