The Institute of Economic Affairs (IEA) has endorsed Ghana’s decision to pursue partner-country status in BRICS, describing the initiative as a strategic opportunity to expand international trade, attract foreign investment and strengthen economic cooperation with emerging global economies.
The Institute believes Ghana’s engagement with the economic bloc could open new markets for locally produced goods, diversify investment opportunities and strengthen the country’s position in international trade.
In a statement welcoming the government’s decision, the IEA noted that BRICS, with a combined population exceeding 3.5 billion people and accounting for an estimated 30 per cent of global economic output, presents significant economic opportunities for Ghana.
“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 said.
IEA Sees Opportunities for Trade Expansion
According to the Institute, Ghana stands to benefit from stronger economic relations with BRICS countries through expanded export markets, increased investment flows and deeper commercial partnerships.
It maintained that closer cooperation with the bloc could provide Ghanaian businesses with opportunities to access larger consumer markets and establish new trading relationships.
However, the IEA emphasised that the potential benefits would depend on Ghana’s ability to improve its export competitiveness and develop deliberate policies to support domestic businesses.
The Institute therefore urged the government to strengthen local production capacity and establish effective institutional support systems to enable Ghanaian enterprises to take advantage of emerging opportunities.
It cautioned that participation in the bloc alone would not automatically translate into increased exports or investment without the necessary economic reforms and policy interventions.
Local Currency Trade Could Reduce Forex Pressures
The IEA also called on the government to explore local currency settlement arrangements with BRICS member countries as part of efforts to reduce the cost of international transactions.
It explained that such arrangements could minimise foreign exchange conversion costs and reduce businesses’ exposure to exchange-rate fluctuations.
According to the Institute, promoting alternative payment and settlement mechanisms could help facilitate trade between Ghanaian businesses and their counterparts in BRICS economies.
It stressed, however, that Ghana must carefully assess the practical implications of such arrangements to ensure they support the country’s broader economic and financial interests.
Ghana Must Maintain Traditional Economic Partnerships
Despite endorsing the BRICS initiative, the IEA cautioned against allowing the proposed partnership to undermine Ghana’s longstanding economic and diplomatic relationships with traditional development partners.
The Institute maintained that Ghana must continue strengthening its cooperation with the United States, European Union, United Kingdom, International Monetary Fund (IMF) and World Bank.
It argued that engagement with BRICS should complement existing international partnerships rather than replace them.
The IEA stressed that maintaining balanced economic relations would enable Ghana to diversify its international partnerships while preserving access to established markets, development financing and technical cooperation.
Government Urged to Prioritise Economic Competitiveness
The Institute further called for a coordinated national strategy to ensure Ghana derives measurable economic benefits from its engagement with BRICS.
It emphasised the need for policies that promote export diversification, strengthen domestic industries and improve the competitiveness of Ghanaian businesses in international markets.
According to the IEA, the success of Ghana’s proposed BRICS partnership would ultimately depend on the country’s preparedness to convert diplomatic engagement into tangible trade, investment and economic opportunities.
The Institute reaffirmed its support for the initiative, maintaining that a carefully managed partnership could strengthen Ghana’s economic prospects while preserving its established international relationships.
