- IEA Backs Ghana’s BRICS Partner-Country Bid, Urges Focus on Economic Gains
The Institute of Economic Affairs (IEA) has backed Ghana’s plan to pursue partner-country status in BRICS, arguing that wider economic and diplomatic relationships could help the country find new markets, investment and technology.
But the endorsement comes with a practical test: Ghana must turn the diplomatic move into measurable gains for domestic businesses.
That will require stronger export capacity, clear priorities for negotiations and institutions able to follow through on agreements.
The government has received Cabinet approval to apply for BRICS partner-country status. Ghana has not yet been admitted.
The Foreign Affairs Ministry has clarified that the plan is to seek partner status, rather than full membership. Under BRICS’ process, a partner-country decision requires consensus among the member countries’ leaders.
The distinction is important. Partnership offers a route to closer engagement, but it is not equivalent to full membership or automatic access to trade concessions, financing or investment.
Partner countries may be invited to certain leaders’ and foreign ministers’ meetings, while participation in other activities is subject to consultation and agreement. Ghana’s proposed status would create an opening; the terms and practical value would depend on how BRICS members shape the relationship.
The IEA says the application is consistent with Ghana’s foreign policy principle of positive neutrality and non-alignment. It argues that Ghana can deepen links with emerging economies without abandoning existing relationships with the United States, European Union, United Kingdom, IMF and World Bank. Its position is that diversification is a way to widen Ghana’s options, rather than a signal that the country is changing sides.
That argument reflects the government’s own explanation. President John Dramani Mahama has said the proposed partnership is intended to expand opportunities for trade and investment, support industrialisation and help Ghana add more value to its natural resources.
The Foreign Affairs Ministry has also pointed to the country’s existing economic relations with BRICS members, including India and China.
The potential market is large. The IEA cited BRICS’ combined population of more than 3.5 billion people and about 30% of global economic output as reasons the grouping could offer Ghana greater market access.
But population and economic scale do not automatically translate into demand for Ghanaian goods. The opportunity depends on whether local producers can meet standards, compete on price and deliver consistent volumes.
This is where the policy challenge begins. Ghana’s export earnings still depend heavily on commodities, while the government has repeatedly set out ambitions to expand processing and manufacturing.
A new diplomatic channel can help identify buyers, investors and technical partners, but it cannot by itself resolve constraints such as high production costs, limited access to long-term finance, gaps in infrastructure or inconsistent supply.
The IEA has recognised that condition, saying Ghana must improve export competitiveness and provide strategic support to firms if they are to use any new market access.
The value of the application will therefore depend less on the announcement itself than on the commercial work that follows: which products Ghana wants to export, what market requirements apply, and what support firms need to meet them.
Ghana’s existing trade relations show both the promise and the scale of the task. The Foreign Affairs Ministry has cited a rise in Ghana–India trade from about US$3 billion in 2024 to nearly US$7 billion. Ghana–China trade reached US$14.1 billion in 2025, according to figures released by the Ghanaian authorities.
Those totals demonstrate substantial economic links, but total trade alone does not reveal how much Ghanaian production is exported, how much value is retained locally or whether the balance supports domestic industrial growth.
The IEA has also encouraged government to explore local-currency settlement arrangements with BRICS economies, saying these could reduce foreign-exchange conversion costs and exposure to exchange-rate movements.
Such arrangements may help some traders, but they do not remove currency risk. Importers and exporters would still need willing counterparties, banks able to process and clear payments, and a market for converting or using the currencies received.
Nor should local-currency settlement be confused with a common BRICS currency. The grouping has discussed ways to make cross-border payments more efficient and increase the use of national currencies, while leaving countries to determine their own priorities.
For Ghana, the practical question would be whether settlement arrangements can lower transaction costs without creating new liquidity or exchange-rate-management problems.
Investment is another potential benefit, particularly if it supports industrial capacity, skills and technology transfer. Yet an investment announcement is not the same as a productive investment.
Ghana would need to assess proposals by the jobs they create, the capabilities they build locally, the value they retain in the country and the risks they place on public finances. Competition among international partners can improve Ghana’s negotiating position only if the country enters negotiations with clear priorities and strong institutions.
The broader strategic case is diversification. Ghana’s economic exposure to commodity prices, external financing conditions and concentrated export markets makes it sensible to maintain a wide range of relationships.
But a larger network of partners can also mean more complex negotiations and greater demands on diplomatic and commercial capacity. The challenge is to make new partnerships complementary to existing ones and consistent with national development goals.
The IEA’s support thus comes with a measure of accountability. If the application succeeds, government will need to identify the specific trade, investment and technology opportunities it is pursuing, and publish progress on whether those opportunities are producing results. Businesses, in turn, need practical support to meet standards and compete in new markets.
Ghana’s BRICS bid may widen the country’s diplomatic options. Its economic value will be determined by what Ghanaian firms can sell, what productive investment arrives and how much capability the country builds at home. That is the difference between gaining a seat in a wider conversation and turning the conversation into development.
