IEA backs Ghana’s BRICS bid, says partnership could open new markets for businesses

The Institute of Economic Affairs (IEA) has welcomed Ghana’s decision to pursue partner-country status in BRICS, describing it as an opportunity to broaden the country’s international economic relationships, attract investment and open up new markets for local businesses.

In a statement issued on Monday, November 9, the Institute said the decision, which has received Cabinet approval, was consistent with Ghana’s foreign policy principle of positive neutrality and non-alignment.

It argued that closer engagement with the bloc would strengthen economic and diplomatic ties with emerging economies without undermining the country’s existing relationships with the United States, the European Union, the United Kingdom, the International Monetary Fund and the World Bank.

The IEA said BRICS, with a combined population of more than 3.5 billion people and about 30 per cent of global economic output, could offer Ghana significant opportunities to expand trade and market access.

“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 noted.

It also encouraged the government to explore local currency settlement arrangements with member economies to reduce foreign exchange conversion costs and exposure to exchange-rate fluctuations.

However, the Institute cautioned that securing these benefits would require deliberate policy measures, stronger export competitiveness and effective support systems to enable Ghanaian businesses to take advantage of the opportunities.

It stressed that the new partnership should complement, rather than replace, Ghana’s traditional international relationships.