How India-Ghana ties can guide Delhi's Africa strategy

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9 hours ago

Prime Minister Narendra Modi being greeted by the President of Ghana, John Mahama, at the airport, on Wednesday. Image courtesy: X.com/@NarendraModi
Prime Minister Narendra Modi's visit to Ghana, en route to the Brics summit, stands out as a strategic use of an intercontinental journey. On the return leg, the Prime Minister is also scheduled to visit Namibia. With these visits, the PM will have engaged with two key countries on Africa's Atlantic coast, complementing his earlier outreach to nations in East and Southern Africa.
There are several key takeaways from the Ghana visit that could shape India's future partnership through the upcoming India-Africa Forum Summit (IAFS IV).
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Symbolism and Diplomatic Signalling
One notable gesture was Ghana's re-elected President John Mahama personally receiving PM Modi at the airport, breaking protocol, on Wednesday. This symbolic act underscores how countries like Ghana, irrespective of their current depth of ties with India, see India as a model for their own aspirations. Despite having substantial engagements with China, the EU, and others, Ghana's admiration for India's democratic, pluralistic, economic success is evident. This respect also explains why the PM was invited to address the Ghanaian Parliament.
India-Ghana economic ties are characterised by a diversity of engagements, especially in agriculture, pharmaceuticals, vaccines, and skill development. These sectors not only reflect India's strengths but are also areas of immense interest across the African continent. They should serve as the fulcrum of India's wider Africa engagement.
From India's perspective, there is growing interest in defence cooperation, counter-terrorism, de-radicalisation, and the export of affordable defence equipment. Ghana, as a member of Ecowas, a regional bloc of 15 West African nations including Anglophone, Francophone, and Lusophone members, is strategically significant. Though Mali, Niger, and Burkina Faso have recently exited Ecowas following military coups, India could still collaborate with Ghana on counter-terrorism efforts, especially considering the rise of extremism in the Sahel region. Building joint training and support initiatives in this area would benefit both nations and the broader region.
Trade Potential and Investment Focus
Bilateral trade stands at approximately $3 billion annually. While Ghana's exports to India, mainly gold, are limited in diversity, the discovery and development of critical minerals and oil reserves offer room for expansion. However, Ghana does not qualify as a Least Developed Country (LDC) and thus does not benefit from India's Duty-Free Tariff Preference (DFTP) scheme, introduced in 2008 to boost trade with African Least Developed Countries. As a result, India must explore new trade mechanisms beyond concessional preferences.
Indian defence and project exports could emerge as promising growth areas. Importantly, what Ghana seeks most from India is investment. With about $2 billion in Indian investments, India is the second-largest investor in Ghana by number of projects. This success is largely driven by Indian small- and medium-sized enterprises (SMEs) and professionals who have established a robust presence in the country. The growing diaspora, now around 15,000 strong, warmly welcomed PM Modi. They reflect this investment-led engagement.
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India must now shift from its traditional development cooperation model, which emphasised Lines of Credit (LoCs), to a more sustainable and commercially viable model. Ghana, having approached the IMF for assistance 17 times, now faces limitations in borrowing and repayment. Hence, future cooperation should favour Public-Private Partnerships (PPPs) and support Indian investors without relying on sovereign guarantees.
Leveraging Success Models for Capacity Building
India's infrastructure contributions in Ghana, including government buildings and the Centre of Excellence in IT named after Kofi Annan, are noteworthy. Although established in 2002, before the India-Africa Forum Summit (IAFS) framework, this centre has been expanded under the IAFS and now stands as one of Africa's most successful and self-sustaining IT hubs. This model of capacity building, particularly through PPPs, should be replicated across the continent.
Tapping into Continental Trade Integration
Ghana hosts the Secretariat of the African Continental Free Trade Area (AfCFTA), which, despite Covid-era delays, has been implemented, albeit sporadically. The AfCFTA allows regional markets to flourish, and Indian investors, particularly those in populous countries, now find it easier to expand across borders. India should actively tap into this opportunity to boost FDI-led growth in Africa.
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Strategic Multilateral Engagement
Most African nations support India's bid for a permanent seat on the UN Security Council. However, the African Union's Ezulwini Consensus has not gained wide traction within the UN system. Ghana, as a member of the AU's Committee of Ten on this issue, plays a crucial role. Strengthening bilateral cooperation with Ghana could further India's multilateral objectives.
Ghana has consistently supported the IAFS process, from President Kufuor's enthusiastic participation in the 2008 summit in Delhi to Ghana's attendance at IAFS-III in 2015, when all African heads of state were invited. Whether Ghana will participate in IAFS-IV depends on the format, whether it remains inclusive or reverts to the more limited Banjul format.
Ghana remains a pivotal partner for India in West Africa. Its influence within Ecowas and the AU, combined with India's economic, diplomatic, and cultural engagement, offers a strong foundation to further elevate ties. India must capitalise on this momentum, not just through aid or lines of credit, but through sustainable investment, skill-building, innovation, and multilateral cooperation. Revitalising ties with countries like Ghana will be essential to shaping India's future in Africa.
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The author is a former ambassador to Germany, Indonesia, Ethiopia, ASEAN and the African Union. He tweets @AmbGurjitSingh. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.