In the wake of the Pahalgam terrorist attack on April 23, India launched Operation Sindoor and gave a befitting reply to Pakistan, sending an additional message to the world of having zero tolerance for terrorism. Subsequently, India also launched a diplomatic drive globally, with special focus on the Global South. Ahead of the BRICS scheduled meeting in Brazil, Prime Minister Modi’s recent visit to Ghana, Trinidad & Tobago, Argentina, and Namibia is additionally an important component of India’s diplomatic drive to fight against terrorism with a zero-tolerance approach.
Although oil trading began in the late 19th century and started dominating global trade in the mid-20th century, its influence is now on a declining trend. The future of international trade is now expected to be influenced by rare earth minerals. As countries from the Global South hold significantly large reserves of both light and heavy rare earth minerals such as uranium, lithium, cobalt, manganese, dysprosium, and terbium (widely used for making permanent magnets for electric vehicles), PM Modi’s subsequent visit to these countries ahead of his participation in the BRICS meeting is a masterstroke.
In light of Vision 2047, India’s aspiration to rapidly transition to sustainable development approaches—such as green energy initiatives and the manufacturing of electric vehicles—will obviously require the above-mentioned mineral resources for industrial development. Therefore, the recent visit of PM Modi is undoubtedly a step towards achieving one of the crucial goals of Viksit Bharat.
Compared to other interior countries in the region, Ghana (located in the Gulf of Guinea) and Namibia, being situated on the coast of the Atlantic Ocean, are strategically more important, giving India geopolitical access to engage with other African countries where China is already showing its active presence. While Rwanda is in line to join the services, Namibia—becoming the first country in the region to embrace the UPI (Unified Payment Interface) digital network—sends a positive signal about India’s gradual expansion in the region. Therefore, India’s geopolitical outreach in Ghana and Namibia will potentially counter China’s deep presence in Nigeria and Angola, potentially providing India with a gateway to the landlocked countries of Central Africa.
Ghana, having a large and significant Indian diaspora, shares a strong historical connection with India since its very independence. Ghana, being an important nation in the Gulf of Guinea, is strategically located in the region of Western Africa, offering India a strategic opening to the Atlantic Ocean. The Economic Community of West African States (ECOWAS) is considered a regional entity to govern the West African economic community. Therefore, for India, engaging with Ghana means engaging with ECOWAS.
West Africa has a vibrant stock of natural resources, and Ghana has geographically a significant portion of these mineral resources. The area where Ghana is located is known for very severe maritime economic piracy. India, being a strong naval power in the Indian Ocean, showcasing the prominence of the SAGAR initiative, will potentially work in collaboration with West African countries of the Gulf of Guinea, helping these countries to fight piracy in the region. Ghana, also being an important member of the India-Africa Forum Summit, is likely to serve as a launchpad for India to engage with the countries situated in the Global South.
A Tectonic Shift in India-Ghana Bilateral Relations
Ghana’s previous engagements with China have not benefited Ghana that much; instead, China developed its infrastructure in the country in such a way that China only benefited itself from Ghana. Taking advantage of China’s exploitative policies in Ghana, India plays smart and looks forward to initially engaging with the common people of the country. In line with benefiting the common public, the Indian government intends to connect with Ghanaians through several welfare initiatives, such as Feed Ghana and skill development programs for the youth in the country.
As Ghana is the largest producer of gold in the region, and India is the world’s largest gold consumer, this contrast clearly shows how important and strong our bilateral relations are going to be in the future. Once the gold supply chain is established between the two countries, it will certainly help India manage the inflation of gold in the region. India, with its rich socio-religious and ethnic diversity, is one of the biggest hubs of many religions and cultural functions, where the demand for gold can be seen persisting throughout the year.
It is estimated that Ghana holds more than 960 million tonnes of bauxite reserves, which are used as an important component of several industries such as construction, aerospace, defense, electric vehicle manufacturing, etc. Apart from this, bauxite is also used in the production of manganese and steel industries. As both countries have signed a trade deal for bauxite, once India starts importing bauxite from Ghana, it will give India an edge over other countries to excel in the industries mentioned above. Therefore, this trade deal between Ghana and India is expected to help the Indian Semiconductor Mission flourish in the region.
Ghana additionally has a great lithium reserve, and its import will help India excel in the battery manufacturing industry. Ghana’s trade of lithium may provide India with an alternative, reducing its dependency on Australia and Latin America. Ghana has also requested that India conduct an ISRO-backed survey to explore other hidden mineral resources, primarily lithium, in the country. In return, India has promised to popularise Ghana’s lithium reserves in the entire Global South region, where India already has a greater influence.
Therefore, the promotion of Ghana in the Global South region is expected to help India deepen its strategic influence in the pro-Ghana West African countries, where China is already gradually expanding its wings. India has also founded a Critical Mineral Working Group under the India-Ghana Strategic Mineral Partnership Agreement, through which India, without any conditionality or coercion, will help Ghana in the exploration of natural minerals of the country.
Hence, Ghana and Namibia, being located on the coast of the Atlantic Ocean, have not only become strategic trade partners of India but also important gateways to trade with other landlocked Central African countries in the region. Considering China’s extensive penetration in the region, the Indian government must prioritise engaging with the strategically located countries in the region using all possible means, as India is consistently seeking to champion the Global South, intending to overpower China’s debt-driven influence in the region.
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