India and Ghana: Narendra Modi's visit rekindles historical ties

AllAfrica

03-07-2025

Narendra Modi's trip to Ghana in July 2025, part of a five-nation visit, is the first by an Indian prime minister in over 30 years. The two countries' relationship goes back more than half a century to when India helped the newly independent Ghana set up its intelligence agencies. Ghana is also home to several large Indian-owned manufacturing and trading companies. International relations scholar Pius Siakwah unpacks the context of the visit.
It can be traced to links between Kwame Nkrumah, Ghana's first president, and his Indian counterpart, Prime Minister Jawaharlal Nehru, in 1957. It is not surprising that the Indian High Commission is situated near the seat of the Ghana government, Jubilee House.
Nkrumah and Nehru were co-founders of the Non-Aligned Movement, a group of states not formally aligned with major power blocs during the cold war. Its principles focused on respect for sovereignty, neutrality, non-interference, and peaceful dispute resolution. It was also a strong voice against the neo-colonial ambitions of some of the large powers.
The movement emerged in the wave of decolonization after the Second World War. It held its first conference in 1961 under the leadership of Josip Bros Tito (Yugoslavia), Gamal Abdel Nasser (Egypt) and Sukarno (Indonesia) as well as Nehru and Nkrumah.
The relationship between Ghana and India seemingly went into decline after the overthrow of Nkrumah in 1966, coinciding with the decline of Indian presence in global geopolitics.
In 2002, President John Kufuor re-energised India-Ghana relations. This led to the Indian government's financial support in the construction of Ghana's seat of government in 2008.
Though the concept of the Non-Aligned Movement has faded this century, its principles have crystallized into South-South cooperation. This is the exchange of knowledge, skills, resources and technologies among regions in the developing world.
South-South cooperation has fueled India-Ghana relations. Modi's diplomatic efforts since 2014 have sought to relaunch India's presence in Africa.
In recent times, India has engaged Africa through the India–Africa Forum Summit. The first summit was held in 2008 in New Delhi with 14 countries from Africa. The largest one was held in 2015. The fourth was postponed in 2020 due to Covid-19.
The summit has led to 50,000 scholarships, a focus on renewable energy through the International Solar Alliance and an expansion of the Pan-African e-Network to bridge healthcare and educational gaps. Development projects are financed through India's EXIM Bank.
India is now one of Ghana's major trading partners, importing primary products like minerals, while exporting manufactured products such as pharmaceuticals, transport and agricultural machinery. The Ghana-India Trade Advisory Chamber was established in 2018 for socio-economic exchange.
Modi's visit supports the strengthening of economic and defence ties.
The bilateral trade between India and Ghana moved from US$1 billion in 2011-12 to US$4.5 billion in 2018-19. It then dipped to US$2.2 billion in 2020-21 due to Covid. By 2023, bilateral trade amounted to around US$3.3 billion, making India the third-largest export and import partner behind China and Switzerland.
Indian companies have invested in over 700 projects in Ghana. These include B5 Plus, a leading iron and steel manufacturer, and Melcom, Ghana's largest supermarket chain.
India is also one of the leading sources of foreign direct investment into Ghana. Indian companies had invested over US$2 billion in Ghana by 2021, according to the Ghana Investment Promotion Center.
The key areas of collaboration are economic, particularly: energy
infrastructure (for example, construction of the Tema to Mpakadan railway line)
defence
technology
pharmaceuticals
agriculture (agro-processing, mechanisation and irrigation systems)
industrial (light manufacturing).
Modi's visit is part of a broader visit to strengthen bilateral ties and a follow-up to the BRICS Summit to be held in Brazil. Thus, whereas South Africa is often seen as the gateway to Africa, Ghana is becoming the opening to West Africa.
Modi's visit can be viewed in several ways.
First, India as a neo-colonialist. Some commentators see India's presence as just a continuation of exploitative relations. This manifests in financial and agricultural exploitation and land grabbing.
Second, India as smart influencer. This is where the country adopts a low profile but benefits from soft power; linguistic, cultural and historical advantages; and good relationships at various societal and governmental levels.
Third, India as a perennial underdog. India has less funding, underdeveloped communications, limited diplomatic capacity, little soft power advantage and an underwhelming media presence compared with China. China is able to project its power in Africa through project financing and loans, visible diplomatic presence with visits and media coverage in Ghana. Some of the coverage of Chinese activities in Ghana is negative – illegal mining is an example. India benefits from limited negative media presence but its contributions in areas of pharmaceuticals and infrastructure don't get attention.
Modi will want his visit to build on ideas of South-South cooperation, soft power and smart operating. He'll want to refute notions that India is a perennial underdog or a neo-colonialist in a new scramble for Africa.
In 2025, Ghana has to navigate a complex geopolitical space.
Pius Siakwah is a senior research fellow at the Institute of African Studies, University of Ghana.
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