PM State Visit to Ghana

Syllabus: GS2/IR

Context

• Prime Minister Narendra Modi, who is on a five-nation tour, arrived in Ghana on a two-day State visit.

Major Highlights

• This is the first visit by an Indian PM to Ghana in the last three decades.
• Four MoUs were signed following the talks, including in the areas of cultural exchange and traditional music. 
• Prime Minister Modi announced that the leaders have decided to give the India-Ghana partnership the form of a Comprehensive Partnership.
• PM was also conferred with Ghana’s highest state honour ‘the Companion of the Order of the Star of Ghana’ in recognition of his distinguished statesmanship and influential global leadership. 

Brief on India-Ghana Relations

• Historical Context: India and Ghana share historical ties rooted in anti-colonial solidarity and a shared vision for the Global South.
  • India established its representative office in Accra in 1953, four years before Ghana gained independence in 1957. 
  • Diplomatic relations were formally established the same year, laying the foundation for a close and friendly partnership.
  • Both nations are founding members of the Non-Aligned Movement.
• Institutional Mechanisms: The Joint Commission was established in 1995 and reinforced in 2016, while a protocol for Foreign Office Consultations was signed in 2002.
  • Three rounds of consultations have been held since then, with the latest in 2022. 
  • The Joint Trade Committee, operational since 1981, held its fourth meeting in 2024. 
• Trade Relations: India is among Ghana’s top trading partners and the largest destination for Ghanaian exports. 
  • Bilateral trade between India and Ghana stood at approximately USD 3 billion in 2023–24, with Ghana enjoying a positive trade balance due to substantial gold exports. 
    • Imports of gold by India accounts for over 70% of total imports from Ghana.
  • Ghana is a key destination for Indian pharmaceutical exports, which are critical to the country’s healthcare system.
• Investment: India is among the top investors in Ghana, with more than $1.2 billion channelled into sectors such as agro-processing, mining, manufacturing, construction, and ICT.
  • India holds the 2nd place for investments in 12 projects (after China) and 8th by value of FDIs in 2024.
• Development Partnership: India has extended around 450 million US dollars in concessional credit and grants for infrastructure and capacity-building projects.
  • Landmark initiatives include the India-Ghana Kofi Annan ICT Centre of Excellence established in 2003, the Rural Electrification Project, the Jubilee House Presidential Complex which was rehabilitated in 2017, and the Komenda Sugar Plant and Elmina Fish Processing Plant inaugurated in 2016. 
  • India supported the construction of the Tema-Mpakadan Standard Gauge Railway Line, which was inaugurated in 2024.
• Capacity Building & Human Resource Development: Over 1,600 scholarships have been offered under the e-Vidya Bharati and e-Arogya Bharati digital network project. 
  • Ghana has benefited from India’s Pan-African e-Network initiative, enabling telemedicine and tele-education services through Indian institutions.
• Sectoral Cooperation: Agreements have been signed to promote cooperation in areas like LPG distribution, peaceful uses of nuclear energy and standardisation through collaborations between India’s Bureau of Indian Standards and Ghana Standards Authority.
  • Air connectivity is facilitated through the Air Services Agreement signed in 1978 and updated through subsequent MoUs. 
  • Cultural exchange remains a vibrant aspect of the partnership, anchored by a Cultural Agreement signed in 1981 and periodic Cultural Exchange Programmes. 
• Humanitarian Support: India also extended humanitarian support to Ghana during the COVID-19 pandemic, providing 50,000 vaccine doses as a grant and over 1.6 million doses through the COVAX facility.
• Indian Community: There is a sizable Indian community in Ghana numbering over 15,000. Some of them have been in Ghana for over 70 years.

Significance of Ghana for India

• Gateway to West Africa: Ghana is considered a political and economic gateway to West Africa, the democratic stability makes Ghana an ideal partner for India’s African engagement strategy.
  • Its geographic location and regional influence allow India to deepen its engagement with ECOWAS (Economic Community of West African States).

• Economic Cooperation: India’s engagement with Ghana supports its economic diplomacy goals in Africa, ensuring access to critical raw materials like gold, bauxite, and cocoa.
• Strategic and Security Cooperation: Ghana lies on the Gulf of Guinea, a region significant for India’s maritime security, energy shipping routes, and anti-piracy operations.
  • Partnering with Ghana on defence cooperation offers opportunities to expand its defence exports and security partnerships in Africa.
• Development Partnership and South-South Cooperation: India supports Ghana through Lines of Credit, capacity building, and grants under its South-South Cooperation policy.
  • Projects like rural electrification, water supply systems, and skill development centers help build goodwill and reinforce India’s image as a responsible development partner.
• Vaccine Development: The visit focuses on vaccine development and creating a vaccine hub in Ghana for West Africa represents a new dimension of cooperation.
  • This aligns with India’s pharmaceutical strengths and its vision of becoming a global hub for affordable healthcare solutions. 
• Multilateral and Diplomatic Alignment: Ghana supports India’s bid for a permanent seat in UNSC and collaborates in platforms like the Commonwealth, NAM, G77, and India-Africa Forum Summit.
  • Ghana’s democratic values and shared development priorities align with India’s foreign policy goals in Africa.
• Diaspora and Cultural Linkages: A sizable Indian-origin community contributes to Ghana’s economy, especially in commerce and industry.
  • Cultural exchange, yoga, Indian Cinema, and education create strong people-to-people ties, reinforcing India’s image as a benevolent and inclusive global power.

Way Ahead

• Ghana is a valued partner in the Global South and plays an important role in the African Union and the Economic Community of West African States.
• Strengthening ties with Ghana contributes to India’s aspirations for global leadership, economic expansion, and regional influence in Africa.
• The visit will build on India’s historic ties with Ghana and help in opening up areas like investment, energy, health, security, capacity building and development partnership.

Source: IE