A Chinese-based construction company, Beijing Everyway Traffic and Lighting Tech. Co. Ltd., is claiming USD55 million from Ghana for cancelling a contract it was awarded to develop an intelligent traffic management system for the country.

The same contract was awarded to another Chinese-based company by the government of Ghana.

The notice of arbitration was served on the Ghana government under the China-Ghana Bilateral Investment Treaty on Wednesday, 10 February 2021.

The Chinese-based company is being represented by Zhong Lun Law Firm in Beijing.

The lawyers are of the opinion that the claim against Ghana is the first against an African country by a mainland Chinese investor.

China is one of the leading foreign direct investors in Africa.

Chinese foreign direct investment in Africa soared from USD75 Million in the year 2008 to USD2.7 billion in the year 2019.