By Samuel LARTEY(Prof)
In an era where global alliances redefine economic landscapes, Ghana stands at a crossroads of opportunity.
The BRICS consortium, comprising Brazil, Russia, India, China, and South Africa, has emerged as a formidable force, representing over 40% of the world’s population and approximately 37.3% of global GDP.
As BRICS expands its membership, the question arises: Should Ghana seize the moment to join this influential bloc? This feature article delves into the origins of BRICS, the journey of new entrants, and the compelling reasons for Ghana to pursue membership, leveraging its robust partnership with China.
The genesis and evolution of BRICS
Coined in 2001 by economist Jim O’Neill, the term “BRIC” highlighted the emerging economies of Brazil, Russia, India, and China. These nations formalised their collaboration in 2009, aiming to amplify their influence on global economic policies. South Africa’s inclusion in 2010 transformed the acronym to BRICS.
The bloc’s objectives encompass fostering economic cooperation, reforming financial institutions, and enhancing cultural ties. Notably, BRICS has expanded to include countries like Saudi Arabia, Egypt, Iran, Ethiopia, and the United Arab Emirates, reflecting its growing appeal.
New entrants: Motivations and anticipated benefits
Countries aspiring to join BRICS are driven by the promise of increased trade, investment, and a platform to voice their perspectives in global forums. For instance, nations like Saudi Arabia and Egypt anticipate that BRICS membership will lead to diversified trade partnerships and reduced reliance on Western financial systems.
The New Development Bank (NDB), established by BRICS, offers member countries access to funding for infrastructure and sustainable development projects, presenting a significant incentive for new entrants.
Ghana’s readiness to join BRICS: Economic resurgence and strategic positioning
Ghana’s potential accession to BRICS is backed by its recent economic resurgence and strategic reforms aimed at enhancing its global financial standing. In the first half of 2024, Ghana recorded an impressive 5.8% real GDP growth, a sharp rise from 2.9% in 2023, driven by robust expansions in key sectors: industry (8.0%), agriculture (5.0%), and services (4.4%).
The mining sector, particularly gold exports, played a pivotal role, with earnings soaring to $11.64 billion in 2024. In response, the government is set to establish a Gold Board to regulate purchases from small-scale miners and curb smuggling, reinforcing its role as Africa’s leading gold producer.
Furthermore, Ghana’s central bank reduced the benchmark interest rate by 200 basis points to 27% in September 2024, signalling improved inflation control and economic stability.
The nation’s ambitious debt restructuring plan, aimed at bringing public debt below 80% of GDP by 2025, strengthens its fiscal sustainability. With these economic strides and reforms, Ghana stands as a viable candidate for BRICS, offering mutual benefits in trade, investment, and geopolitical cooperation.
Ghana-China relations: A pillar for BRICS aspirations
Ghana’s economic ties with China have strengthened over the years. In 2022, bilateral trade between the two nations reached approximately $9.92 billion, with China exporting $7.91 billion worth of goods to Ghana and importing $2.01 billion from Ghana. Notably, in 2024, China’s Zijin Mining Group announced a $1 billion acquisition of Ghana’s Akyem Gold Mine, underscoring the deepening investment relationship. This robust partnership positions China as a pivotal ally in supporting Ghana’s potential BRICS membership.
The imperative for Ghana’s BRICS membership
Joining BRICS offers Ghana several strategic advantages:
- Access to development financing:
Membership would provide Ghana with opportunities to secure funding from the NDB, facilitating infrastructure projects and sustainable development initiatives.
- Diversified trade partnerships:
Engaging with BRICS nations can help Ghana reduce its dependence on traditional markets, fostering economic resilience.
- Enhanced geopolitical influence:
Being part of BRICS would amplify Ghana’s voice in global economic discussions, aligning with its aspirations for greater international integration.
Navigating the path to membership: China’s support
The process of joining BRICS involves meeting specific economic and political criteria and securing consensus among existing members. China, with its significant influence within BRICS and its strong bilateral ties with Ghana, can play a crucial role in this endeavour.
By advocating for Ghana’s inclusion, providing technical assistance to align policies with BRICS standards, and facilitating high-level diplomatic engagements, China can help fast-track Ghana’s accession.
Conclusion
Ghana’s pursuit of BRICS membership represents a strategic move toward sustainable economic development and enhanced global influence. By capitalising on its strong partnership with China, Ghana can navigate the accession process effectively, positioning itself to reap the multifaceted benefits of being part of this influential alliance. The time is ripe for Ghana to take decisive steps toward this goal, ushering in a new era of prosperity and international collaboration.
