Coronavirus may affect Chinese investment in Ghana according to an Asian study expert, Dr Lloyd Amoah

In an interview with Accra-based Citi FM, Dr Amoah said he does not expect a drastic reduction in investment but stakeholders should not be surprised if it happens.

“I think it is early days yet to predict or suggest that on the account of these factors, the implication then is that investments will necessarily slow down in countries like Ghana or other countries in the world that have become tightly connected with the Chinese economy.”

He explained that a certain degree of slowdown is expected since the focus of the Chinese government has been turned to fighting the disease.

“To some extent, there will be a slowing in the flow of resources because the Chinese government has directed a lot of its focus in trying to contain the disease. It will take some doing over a period to get back to the old order of things.”

“In that sense, you should expect natural slowing down on the account of the events that have occurred. But the key thing is whether or not there will be a bounce back. But if you look at SARS and the way the Chinese managed it, it was clear the Chinese economy eventually bounced fairly quickly,” he added.

According to the Chinese Ambassador in Ghana, as of the end of 2018, the trade between Ghana and China reached US$7.3 billion, making Ghana the 7th largest trading partner of China in Africa.

Over 800 people have died after contracting the coronavirus. Almost 40,000 people have been infected throughout China and other countries across the globe.

The World Health Organisation has already declared the disease a global emergency.