Economic & Trade Relations
High Commission of India
Accra, Ghana
Bilateral Trade and Economic Relations
Trade and commercial relations between the two countries were governed by the Trade Agreement signed in 1981. Since then, the Government of India (GOI) has extended one official Line of Credit (LOC) and two Credit lines through EXIM Bank. These lines were fully utilized and fully repaid. Recently, an EXIM Bank line of credit of $15 million became effective and is under disbursement. GOI has approved another US $27 million EXIM LOC to the Government of Ghana on concessional terms. These LOCs will help finance projects with poverty alleviation objectives including rural electrification projects, purchase of tractors for the President’s special initiative on agriculture and purchase of buses for transportation sector. Ghana is one of the eight TEAM 9 countries, for which GOI has announced a concessional US $ 500 million Credit for the socio-economic development of these countries. Under TEAM 9, GOI has recently extended a Line of Credit (LOC) for US $ 60 million for projects in rural electrification and construction sector.
India has already extended a US $200 million Line of Credit for NEPAD, of which Ghana is a member. India has also provided a grant of US $ 50 million in 2005 for establishment of a Pan-African Satellite/Fiber Optic Network to provide effective communication and connectivity to all African countries, which would address their socio-economic developmental needs by providing tele-medicine, tele-education and supporting e-governance, e-commerce, infotainment, resources mapping and meteorological services.
During the year 2003-04, delegations from the Ministry of Agriculture, Governments of Punjab and Haryana, EEPC, CII (signed an MOU with the India Ghana Development Consortium to promote interaction at private sector level), PEC, EXIM Bank (for signing of US $ 15 million LOC), Jute Manufacturers Association, TCIL, RITES, Water & Power Consultancy Services, Tata International, KLR (in the area of drilling), Ashok Leyland, Kirloskar Bros (water sector rehabilititation), TATA (for the inauguration of its new agency in Ghana), Eicher Tractors Ltd, Mohan Exports (in areas of rural electrification, road, supply of vehicles and other support items to Ghana Armed Forces; was recently awarded the US $ 25 million contract for rural electrification), Shapoorji Palonji (in areas of road, construction of bridges, IT Park etc; signed an MOU with the Ministry of Roads & Transport of Ghana for the construction of a section of the road to Cape Coast under our NEPAD LOC; was recently awarded US$ 30 million contract for construction of ‘Presidential Complex’), and Angelique International (signed MOUs with Ministry of Energy and Ministry of Food & Agriculture for US$ 45 million and US$ 15 million for rural electrification and irrigation facilities respectively; was recently awarded US$ 30 million contract for rural electrification) have visited Ghana to explore possibilities of expanding bilateral cooperation and/or review ongoing operations in Ghana.
The most recent delegations included those from the Indian Oil Corporation in February 2004 (to explore the possibilities of cooperation with the Ministry of Energy and Ghana Oil Company Limited in downstream petroleum sector), the Electronics and Computer Software Export Promotion Council, New Delhi in February-March 2004, the Synthetic and Rayon Textile Export Promotion Council, Mumbai (which organized the first ever Indian Textile Exhibition and Buyer-Seller meet in Accra) in March 2004, Managing Director, Indo-Nigerian Bank Ltd. (a subsidiary of the State Bank of India) in May 2004 for the proposed opening of a Joint Venture Bank by SBI, Gems and Jewellery Export Promotion Council (GJEPC) in June 2004 to explore possibilities of direct purchase of raw diamonds, training of Ghanaian jewelers in India and investment in Ghana Consolidated Diamonds for its modernization & rehabilitation, and a delegation from TATA Group in July 2005.
A 2-member AFMC delegation, led by Lt. Gen. Punita Arora, visited in April 2005 to study requirements for upgradation of 37 Military Hospital in Ghana into a Teaching Hospital. Others include M/s Angelique International in August - September 2004, M/s Shapoorji Palonji in June and August 2005, and the visit of Journalist, International Division of Indian Express in May - June 2005 for publishing a special report on Indo-Ghana bilateral relations. Delegations from ASSOCHAM and WAPCOS visited in September 2005. During the visit ASSOCHAM signed MOU with the Ghana National Chamber of Commerce and Industry to promote development of bilateral economic relations by providing a platform for businessmen from both sides to meet, discuss and explore business opportunities in trade, investment, transfer of technology, services and other industrial sectors.
EEPC led a diesel engine manufacturers’ delegation in November 2005. During the visit, the delegation met Minister of Trade and Industry, Dy. Minister of Food and Agriculture and Heads of the leading industry/ trade associations like GIPC, GNCCI and AGI. They made a presentation on engineering goods sector in India and organised a Buyer-Seller meet.
From Ghanaian side, in 2004, a delegation from the Ghana Investment Promotion Centre visited India to meet our industry representatives and brief them about investment opportunities in Ghana. A delegation from the Ghana National Petroleum Corporation (GNPC) visited India in October 2004, and signed an MOU with ONGC Videsh Ltd (OVL), which covers a framework for study and evaluation of the area identified by the OVL and scope to enter into exploration, development and production agreement with GNPC. Others include Director of M/s Vadek Leather Craft, in January - February 2005 to participate in the Buyer-Seller Meet held during India International Leather Fair 2005 in Chennai and a 6-member delegation from the Association of Small Scale Industries (ASSI) in April - May 2005 to study Indian technology and expertise in this area, and to seek assistance of the National Small Industries Corporation Ltd. for the development of small scale industries in Ghana.
A high level commercial delegation led by Minister of Energy, Prof. Mike Oquaye, participated in the CII Conclave on ‘India-Africa Project Partnerships’ in March 2005. Minister of Food and Agriculture visited India in April/May 2005 and met with the prominent Indian companies in agricultural machinery/equipments sector. Five-Member delegation led by Deputy Minister of Finance, Prof. George Gyan-Baffour, visited India from 22-26 August 2005 in connection with GOI credit line of US $ 27 million and $60 million to Ghana. Deputy Minister of Food and Agriculture led a business delegation to India in September 2005 for exploring possibilities of importing plant machinery, equipments for Cassava processing and sugar mills. Deputy Minister of Communication, Dr. Benjamin Aggrey Ntim, visited Bangalore in connection with the IT event ‘Bangalore IT.Com 2005’. Deputy Minister of Trade and Industry led a delegation for the CII Conclave for West and Central Africa, held in New Delhi on 7-8 November 2005.
In addition to this, there have been several visits of individual private sector companies from both sides, either by their own initiative or through the initiatives of the High Commission. Most of these contact High Commission only when they need some kind of assistance.
A Joint Trade Committee between India and Ghana exists. An MOU was signed in 1992 establishing the JTC to promote bilateral trade between India and Ghana.
Trend of trade
The table below shows the trade between India and Ghana from 2001 to 2005:
Total Trade
Exports to Ghana
Imports from Ghana
Trade Balance |
2001-02
88.7
68.5
20.2
+48.3 |
2002-03 % growth
128.0 44.3
109.0 59.1
19.0 (-) 6.0
+90.0 -- |
2003-04 % growth
212.8 66.3
180.1 65.3
32.7 72.1
+147.4 -- |
2004-05
214.11
173.94
50.17
+123.77 |
(Figures in USD million)
As may be seen from the above data there has been a significant increase in India’s trade with Ghana over past four years. The balance of trade is in India’s favour.
Commercial, Trade/Business opportunities
There are lots of business opportunities in Ghana. The government of Ghana is providing facilities and incentives to attract FDI from abroad. The Government is also trying to develop Ghana as the “Gateway to West Africa” where Ghana is already a leader in economic (and social) development. The present government aspires to usher in the Golden Age of business for Ghana with the thrust on developing the Ghanaian private sector as the engine of growth for the economy. It is important to state here that on several occasions the Government has emphasized the need for Ghana to look to India for appropriate technology (in the context of South-South Cooperation). Some important sectors for business and trade include agriculture and ago-based industry, establishment of small scale units to produce items for export including garment production, construction materials and other items to reduce dependence on imports, development of infrastructure facilities such as highways and bus services for mass transportation, rail network, power, telecommunication and IT sector, health sector including pharmaceuticals, hospitals, medical equipments and training, mining, upstream and downstream petroleum sector, appropriate technology for manufacturing and industry.
Public-Sector Companies
There are only a few Indian public sector companies operating in Ghana. TCIL has been operating in Ghana for the past several years in telecommunications and has been awarded several large contracts over the last few years, and has recently been awarded contracts amounting to US $60 million by Ghana Telecom. CDAC was involved in setting up of the India-Ghana Kofi Annan Centre of Excellence in Information and Communication Technology, and is still providing assistance to this Centre in course designing, training of faculty etc. RITES has had a long involvement in the railway sector. IRCON did feasibility study for modernization/ upgradation of Accra-Kumasi line in June 2005. There are prospects for future involvement in this sector as a result of government’s plan to rehabilitate and expand the rail network. Under initiatives taken by the High Commission, some public-sector enterprises like Engineers India Ltd., BEML etc. have registered their interest as suppliers and consultants for various projects in irrigation, power, and other sectors. A number of Indian professionals are also in the country, either on direct deputation or through sponsorship of international bodies like the UN agencies, World Bank etc.
Private-Sector Companies
The Indian private sector is steadily increasing its presence in Ghana. They are in areas of pharmaceuticals, IT, automobiles, agro-processing & supply of agricultural equipments including tractors and rural electrification. Some of the Indian companies have stationed their representatives in Ghana – TATA (GH Ltd.), which is under South Africa-based TATA (Africa) Ltd., a representative of TELCO India Ltd. and operates through their agent, PHC Motors, a Ghanaian company. A number of pharmaceutical companies including Eskay Therapeutics Ltd. (representative of Dr. Reddy Laboratories), Torrent Pharmaceuticals, Unichem Laboratories Ltd, Wockhardt Ltd, Tablet India, Intas Pharmaceuticals and Shalina Laboratories have posted their country managers in Ghana. In fact, about 70 Indian pharmaceutical firms manufacturing various pharmaceutical products have got their products registered in Ghana and sell their products through local agents. Indian pharmaceutical products now account for about 50% of the Ghana’s pharmaceutical imports. Other companies present in Ghana include M/s Ashok Leyland Ltd, Maruti Ltd., APTECH, NIIT, Greaves Cotton Ltd. etc.
Local companies owned by NRIs/Persons of Indian Origin
Though most of NRIs/ PIOs are in trading, few have entered into manufacturing in areas such as pharmaceuticals, optical instruments, steel, cement production, plastics and agricultural equipments. NRIs/ PIOs in trading primarily import goods from China, India, Korea and Taiwan.
Major Indian Projects in Ghana
India assisted Ghana with $2 million and technical know-how in setting up an ICT Centre in Ghana. The Centre – India-Ghana Kofi Annan Centre of Excellence in ICT – has been highly successful in conducting training courses in ICT and showcasing India not only in Ghana, but also in other ECOWAS countries. TCE Consulting Engineers Limited (TCE) is expected to do the pre-feasibility study for the Pumped Storage Development (recycling of water) in Akosombo and Kpong dam of Volta River Authority (VRA). TCE has already submitted its proposals in this regard. A demonstration Farmer’s Project is under consideration by GoI. TCIL and Mohan Exports are also carrying out large projects in areas of telecommunications and rural electrification.
Commodities Traded
Our major exports to Ghana include Cotton yarn fabrics, drugs and pharmaceuticals, machinery/instruments, mineral fuel/ oil/ waxes/ bituminous substances (account for about 50% of total exports). Others include transport equipment, tractors, chemicals, clothing, plastic & linoleum products, paper & wood products, electronics, glassware, ceramics, semi-finished iron and steel, rubber products, transport equipment, marine products, sports goods, machine tools, cosmetics/toiletries etc.
Imports from Ghana include Edible fruit and nuts (accounts for about 60% of total imports), Metal ores and scrap (21%), wood (mainly teak) and wood products (10%). Others include oil seeds, cotton raw (and waste), and precious and semi precious stones. Recently, Indian companies arranged the first direct purchase of gold, diamonds and cocoa from Ghana.
October 2005
