PM Modi’s Visit to Ghana and Namibia: A Strategic Milestone in the Global South

 By Sanjay Turi

In the wake of the Pahalgam Terrorism attack on April 22, India launched Operation Sindoor and gave a befitting reply to Pakistan, giving an additional message to the world of having zero tolerance for terrorism. Subsequently, India also launched a diplomatic drive globally, giving 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 sought to focus on wide-ranging economic, energy and cultural cooperation, which would go a long way in strengthening India’s diplomatic drive to foster cooperation to fight against terrorism with a zero-tolerance approach.

Although oil trading began in the late 19^th century and dominated the global trade in the mid-20^th century, its predominant role of hydrocarbon trade is now being challenged by the strategic shift of focus towards rare earth minerals and clean energy technologies . As countries from the Global South hold a significantly large reserve of both light and heavy rare earth minerals such as uranium, lithium, cobalt, manganese, dysprosium, terbium (widely used for making permanent magnet for electric vehicle), 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, though initiatives like that of green energy and the manufacturing of electric vehicles, will obviously require the above-mentioned mineral resources in 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. Namibia has become the first country in the region to embrace the UPI(Unified Payment Interface) digital network, and Rwanda is in line to join the services.  India is gradually expanding its engagement in the region. Ghana and Namibia, located on the Atlantic coast, offer India strategic access to West and Southern African countries where China has already established a strong presence.

Ghana’s strategic location in the Gulf of Guinea in Western Africa also offers India an opening to the Atlantic Ocean. Ghana, having a large and significant Indian diaspora, shares a strong historical connection with India since its very independence.

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 abundant reserves of natural resources, and Ghana has significant portion of these mineral resources. West African countries face severe challenge of sea piracy. India, being a strong naval power in the Indian Ocean, showcasing the prominence of the SAGAR initiative, can potentially work in collaboration with West African countries of the Gulf of Guinea to fight piracy. 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 has been the larger beneficiary. On the contrary, India is strategically more inclusive,  initially engaging with the common people of the country. 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, 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 to stabilise the  gold prices. 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, aviation, defence, electric vehicle manufacturing, etc. Apart from this, Bauxite and Manganese are used in production of steel. 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 boost the Indian Semiconductor Mission by augmenting the upstream industrial inputs.Ghana additionally has a great lithium reserve, and its import will help India excel in the manufacturing of batteries . 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 a strategic trade partner of India but also an important gateway 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. As India is consistently seeking to champion the Global South, it would soon overshadow China’s debt-driven influence in the region.

This is an Original Contribution to the SIS Blog.

Sanjay Turi is a Doctoral Candidate at the Centre for West Asian Studies(CWAS), School of International Studies(SIS), Jawaharlal Nehru University, New Delhi.