Written by Kwame Ofori Appiah
Accra is seeking closer ties with a grouping of emerging economies in the hope of attracting investment, expanding trade and strengthening its economic sovereignty. But analysts warn that without a clear strategy, the move could amount to little more than diplomatic repositioning.
On 6th October, Samuel Okudzeto Ablakwa, Ghana’s minister of foreign affairs, announced that the country is going to seek to join BRICS.
The decision appears to be in keeping with the increasingly assertive posture the Mahama administration has taken to diversify its partnerships as it seeks to sustain its economic recovery.
This was pretty much the case that Ablakwa made in announcing the decision.
“We are members of the International Monetary Fund and the World Bank, and we are also founding members of the African multilateral financial institutions. But BRICS offers us that opportunity to have options in development, and you want to have options,” he explained.
The move is also not to be interpreted as Ghana withdrawing from its existing partnerships in favour of its potential new friends, Ablakwa was quick to clarify.
“We are not going to walk away from our traditional partners who value that relationship, but we must have new friends.”
And yet, questions remain about what this will do to Ghana’s current relationships, particularly with the United States, which has threatened consequences for countries that opt to join the group.
What’s in it for Ghana?
Selorm Branttie, vice president at Imani, one of the country’s most influential think tanks, believes that the move reflects Ghana’s changing trade outlook. In the last thirty years, trade with countries like China and India has grown exponentially, surpassing trade with Europe and America.
“I think that the view is that joining such an emerging group allows us to also ride on some of the advantages that we have since we have better shared experiences economically than we have with the West,” he told New African Magazine in an interview.
The allure of BRICS may lie in the economic weight of its members. China and India are the 2nd and 6th largest economies in the world, with massive manufacturing clout. Brazil is also a significant agricultural producer and exporter. Closer ties to these countries could offer huge potential markets, investment and opportunities for industrial cooperation and technology transfer.
Ghana’s economy has long rested on exporting raw materials. A series of shocks have, however, reinforced for policymakers the idea that local processing could protect the economy from external ruptures, capture more value and boost job creation. Membership of BRICS could provide that new start. It could also help attract capital, equipment and expertise.
That seems to be the argument that Ablakwa is canvassing. “We want resource sovereignty where we can be treated as equal partners. We don’t want a situation where we continue to export raw materials. We want to add value to the natural resources that we have.”
It also means that Ghana can procure some geopolitical heft, given that the other major economic bloc, the G20, is unlikely to admit the country, Branttie adds.
BRICS ‘is not a magic fix’
Not everyone, however, is convinced that the proposed engagement will make a significant difference to Ghana’s economic fortunes.
International relations analyst and development consultant, Elvis Banoemuleng Botah, an international relations analyst and development consultant, for instance, has cautioned that the initiative risks becoming another diplomatic exercise unless it is tied to a clear programme of industrial development.
Responding to the government’s announcement, Botah said “joining BRICS at this time adds nothing much to Ghana. From all that we know, the problem of Ghana is simply economic.”
If it must, he said, Ghana must “enter BRICS with an industrial strategy, not just as another diplomatic ambition.”
Botah also questioned what Ghana would bring to negotiations with countries possessing considerably greater industrial capacity. “Ghana automatically becomes an underdog in this kind of relationship. So, what do you go to the table with? What is our negotiation strategy? And what are our major points of negotiation?” he asked.
The concern is that Ghana may well consolidate its relationships with these major manufacturing economies without developing the capacity to compete with them. If exports remain concentrated in raw materials while imports consist largely of finished goods, closer trade ties could reinforce existing economic imbalances.
Richmond Akwasi Atuahene, a financial analyst based in Accra, has made a similar argument.
“Joining a new economic bloc will not cure the systemic vulnerabilities of the Ghanaian economy,” he said in comments reported by the Ghana News Agency. “BRICS membership,” he stressed, “is not a magic fix for Ghana’s structural and macroeconomic problems.”
Branttie put forward a similar view, noting that achieving the expected benefits is an “entirely different ballgame” and will depend on dynamics within the group and even the domestic politics of the bigger countries in the bloc.
“So we are still followers, and we cannot dictate some of the pace of whatever the agenda is, although we might have a bit more leverage and influence than we would have with the traditional Western bloc trade partners,” he added.
Do Ghanaians care?
Ghana’s move comes at a time of intensifying competition between major powers over trade, technology, finance and the rules governing international relations.
With its history as a founding member of the Non-Aligned Movement and a foreign policy that emphasises its openness to all, Ghana presents an interesting case study.
The United States, under President Trump, has previously threatened tariffs for countries that choose to join BRICS. But given that it has already implemented tariffs against African countries, including Ghana, Branttie said it probably “can’t get much worse.”
Additionally, he said, Ghana’s strategic importance in the region and its longstanding friendship with the United States mean that they wouldn’t want to alienate us too much because of this.
Locally, the announcement has made little waves outside political circles. Ghanaian voters, like most others, remain focused on bread and butter prices.
While sovereignty, geopolitical competition and other grand debates may exercise politicians and analysts, the true test of this and other policies for the average Ghanaian will remain whether it leads to lower prices, higher wages and more jobs.