Key Points

Ghana has positioned itself as a partner in sectors where India has a comparative advantage like pharmaceuticals. More than 26 per cent of generic medicines in Africa are sourced from India and the Food and Drugs Authority's (Ghana’s regulator of pharmaceutical standards) listing of foreign pharmaceutical manufacturing facilities largely comprise Indian companies, India Narrative said in a report.

With Ghana wanting to have training, equipment and security engagement with India in response to increasing threats from the Sahel and coastal piracy, defence cooperation was also on the agenda during PM Modi's visit to Accra. The emphasis on shared security interests is demonstrated by Ghana’s alignment with India on counter-terrorism. Ghana President John Mahama had condemned the terrorist attack that took place in Jammu and Kashmir's Pahalgam on April 22.

Economic ties, however, remain at the heart of this renewed engagement between India and Ghana, the report said. Currently, the bilateral trade between two nations stands at around USD three billion. Leaders of both nations aim to double the bilateral trade to USD six billion over the next five years. Presently, Ghana has trade surplus with India, particularly due to gold exports, which account for more than 70 per cent of its shipments. Ghana imports pharmaceuticals, machinery, vehicles, and various industrial goods from India while cocoa, timber and cashew nuts are its key exports.

India has invested over USD two billion in Ghana, with investments spanning concessional finance, private capital and grants across 900 projects, the report mentioned. India is ranked among top investors in Ghana and state-backed institutions and companies of India play an important part in critical infrastructure development.

Ghana serves as an entry point for India into West Africa's resource landscape. Having reserves of lithium, gold, bauxite and manganese, Ghana is positioned to contribute to India's requirement for critical minerals. According to the report, Ghana President Mahama's invitation for investment in mineral extraction and processing coincides with India's National Critical Mineral Mission.

With nearly USD 100 billion in trade, total investments of about USD 75 billion and a strong diaspora of 3.5 billion, India's Africa policy is characterised by a pragmatic and issue-based approach. During his address in the Ghana Parliament, PM Modi talked about development cooperation that is demand driven and focused on developing local capacity and creating local opportunities. The approach of "to not just invest, but empower" shows India's intention to have ties in mutual agency instead of dependency.

- IANS