The Institute of Economic Affairs (IEA) has endorsed Ghana’s decision to pursue BRICS partner-country status, urging the government to put in place the necessary institutional and policy frameworks to maximise the economic benefits of the partnership.
According to them, the move presents an opportunity for Ghana to diversify its international partnerships, expand access to new markets and attract investment to support industrialisation and long-term economic growth.
In a statement issued on Monday, November 9, the IEA said the decision, which received Cabinet approval, aligns with Ghana’s foreign policy principle of positive neutrality and non-alignment, while providing an avenue to deepen economic and diplomatic cooperation with emerging economies.
It stressed that engaging BRICS should not be interpreted as a departure from Ghana’s traditional international partners, including the United States, the European Union, the United Kingdom, the International Monetary Fund and the World Bank.
Rather, the Institute argued that maintaining existing relationships while exploring new partnerships would give Ghana greater flexibility in advancing its national development priorities.
“With a global population share of over 3.5 billion people, and the control of about 30% of global economic output, BRICS can expand Ghana’s trade and market access,” the statement added.
The Institute also urged the government to pursue arrangements that would support local currency settlements in trade with BRICS economies, potentially reducing foreign exchange conversion costs and exposure to exchange-rate volatility.
However, it cautioned that the benefits would depend on deliberate government policies, improved export competitiveness and effective mechanisms to help Ghanaian businesses take advantage of the opportunities.
The IEA further maintained that Ghana’s decision to pursue the partnership is an exercise of its sovereign right to determine its foreign policy direction without being dictated to by external geopolitical interests.
