Ghana to use UPI payment infrastructure, consider local currency trade settlement

India and Ghana have agreed to work towards operationalisation of India’s Unified Payment Interface (UPI) on the Ghana Interbank Payment and Settlement Systems (GHIPSS) within a period of 6 months even as the two countries to explore possibilities of local currency settlement system.

At a Joint Trade Committee (JTC) meeting in the Ghanaian capital of Accra from 2 to 3 May 2024, the two countries decided to explore the possibilities of a memorandum of understanding (MoU) on digital transformation solutions and also deliberated on the opportunities offered by the African Continental Free Trade Agreement (AfCFTA).

Both sides explore possibility of MoUs on Digital transformation Solutions and Local Currency Settlement System; opportunities under African Continental Free Trade Agreement also discussed

The JTC was co-chaired by Amardeep Singh Bhatia, additional secretary, Department of Commerce from the Indian side and Michael Okyere-Baafi, Ghana’s deputy minister for trade and industry,.

The meeting identified focus areas such as pharmaceuticals, healthcare, information and communication technology, agriculture and food processing, renewable energy, power sector, digital economy and digital infrastructure, critical minerals, textiles and garments, etc for enhancing bilateral trade and investments in a mutually beneficial way.  

A business delegation from the Confederation of Indian Industry (CII) representing various industrial sectors such as fintech, power, electrical machinery, telecommunications, pharmaceuticals etc accompanied the official delegation. The CII delegation also met the AICFTA secretary general and his team and signed MoUs in various areas of cooperation, including setting of standards, investments, participation in trade events in India, and increasing the depth of bilateral engagement.

Ghana-India trade stood at a low $2.87 billion in 2022-23, although the country is an important trade and investment partner for India in the Africa region. India is the third-largest investor in Ghana with interests in areas like pharmaceuticals, construction, manufacturing, trade services, agriculture, tourism etc.