Professor of Finance at the University of Ghana Business School, Prof Godfred Bokpin, has advised the government to approach Ghana's proposed BRICS membership as part of a broader foreign and economic policy strategy. This approach should allow the country to engage with different global economic powers while protecting its interests. Prof Bokpin emphasized that joining BRICS should not be pursued as a substitution strategy for exiting other blocs or aligning with a particular political leaning.
Prof Bokpin made these comments during a discussion on Joy FM's Super Morning Show, where he highlighted the need for Ghana to be clear about its objectives for BRICS membership. He stressed that the country should recognize BRICS as a dominant force in the global economy but also consider its existing strategic partnerships. According to Prof Bokpin, Ghana's traditional partners are watching the country's moves, and a clear strategy is essential to navigate these relationships.
Prof Bokpin emphasized that Ghana should not view BRICS membership as a quick fix for its economic challenges. He drew comparisons with Ghana's participation in the African Continental Free Trade Area (AfCFTA), noting that membership in a regional or international economic bloc does not automatically translate into economic benefits. Prof Bokpin cited Ghana's ratification of the AfCFTA agreement, which did not guarantee that Ghanaian businesses would become competitive across the continent.
According to Prof Bokpin, Ghana must create an enabling environment for local businesses to compete successfully at home before expecting them to compete in international markets. He pointed out that many Ghanaian businesses struggle to compete with imported goods in the domestic market, citing inflation figures as an indication of the challenges facing local producers. Prof Bokpin argued that this situation sends the wrong signal to businesses considering investing in local production.
Prof Bokpin noted that Ghana's inflation dynamics show that inflation on locally produced goods is higher than on imported items. He asked what signal this sends to entrepreneurs, suggesting that it may be more beneficial to import goods and put a local logo on them rather than setting up a production function in Ghana. Prof Bokpin emphasized that Ghana cannot expect its businesses to compete successfully in international markets if they are unable to compete effectively within the domestic economy.
Prof Bokpin acknowledged the government's efforts to stabilize the economy and suggested that the next phase should focus more strongly on growth and productive investment. He encouraged the Minister of Finance to use the expected fiscal space to tackle Ghana's development challenges with greater urgency and scale. Prof Bokpin added that Ghana should explore collaboration with others to achieve its goals.
Foreign Affairs Minister Samuel Okudzeto Ablakwa had previously indicated that Ghana intends to submit an application to join BRICS as part of efforts to diversify its international partnerships, expand economic opportunities, and deepen cooperation with countries in the Global South. Prof Bokpin's comments provide a cautious perspective on this move, emphasizing the need for a clear strategy and consideration of existing partnerships.
Key points
- Prof Bokpin cautions Ghana against abandoning existing partnerships for BRICS membership
- Ghana should approach BRICS membership as part of a broader foreign and economic policy strategy
- Prof Bokpin emphasizes the need for a clear strategy to navigate BRICS membership and existing partnerships
