Ghana's decision to pursue closer ties with the BRICS grouping presents an opportunity for the country to reassess its position in the changing global economic and geopolitical order. According to Elvis Banoemuleng Botah, this move should be accompanied by a clear industrial strategy to leverage the relationship and transform Ghana's productive capacity. Without addressing the structural weaknesses of the economy, joining BRICS may not resolve Ghana's longstanding economic challenges.
The distinction between joining BRICS as a partner country and becoming a full member is significant, with the former offering limited participation in selected meetings and initiatives. As a partner country, Ghana's participation would be restricted compared to full members, particularly in determining the direction and priorities of the grouping. The government must clearly explain the specific benefits Ghana intends to pursue under this arrangement and the mechanisms for realising those benefits.
Joining BRICS does not automatically change the existing core-periphery relationships between industrialised economies and countries like Ghana. Ghana's economy is heavily dependent on the export of primary commodities, including cocoa, gold, and other mineral resources, while importing manufactured products. Without a deliberate industrial strategy, Ghana risks entering this relationship from a structurally disadvantaged position, potentially leading to further exploitation of its primary commodities.
A significant concern is the growing capacity of foreign businesses to compete within Ghana's domestic market. The increasing presence of Chinese-operated retail outlets illustrates how foreign businesses can participate directly in the domestic distribution and retail markets previously served by local traders. This development should prompt a broader examination of how international economic partnerships affect Ghanaian businesses and their ability to compete.
To maximise the benefits of engagement with BRICS, Ghana needs a clear industrial and negotiating strategy. The government must answer key questions, including what Ghana is taking to the BRICS negotiating table, its negotiating strategy, and specific economic outcomes expected. These questions must be answered before assessing the value of Ghana's proposed participation.
Ghana's engagement with BRICS should be anchored in a clear, achievable, and measurable industrial development strategy. This strategy should identify how partnerships with BRICS economies will help Ghana process natural resources domestically, develop manufacturing industries, secure technology transfer, and obtain financing on favourable terms. Specific targets for the next five and ten years should be established to measure the success of these partnerships.
Ultimately, Ghana's fundamental challenge is not the absence of international partnerships but its limited ability to translate these relationships into sustained industrialisation, local value addition, and economic transformation. Joining BRICS will not automatically alter this reality; what is needed are domestic economic policies that prioritise productive investment, strengthen local industries, and improve the competitiveness of Ghanaian businesses.
Key points
- Ghana's proposed engagement with BRICS requires a clear industrial strategy to leverage the relationship and transform its productive capacity.
- The government must clearly explain the specific benefits Ghana intends to pursue under this arrangement and the mechanisms for realising those benefits.
- Domestic economic policies should prioritise productive investment, strengthen local industries, and improve the competitiveness of Ghanaian businesses to maximise the benefits of engagement with BRICS.
