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India and Ghana are forging closer ties in the realm of digital payments, aiming to enhance financial connectivity between the two nations. India's Unified Payments Interface (UPI) and Ghana's Interbank Payment and Settlement Systems (GHIPSS) are slated to be linked, facilitating seamless and cost-effective fund transfers for users.

 

Discussions between the two countries have also broached the possibility of a Memorandum of Understanding (MoU) on digital transformation solutions, local currency settlement systems, and exploring opportunities under the African Continental Free Trade Agreement (AfCFTA).

 

According to a statement from the Department of Commerce shared on the social media platform X (formerly Twitter), both nations have committed to swift action, aiming to operationalize India's UPI on Ghana's GHIPSS within six months.

 

India's UPI system has already extended its reach to countries like Singapore and the UAE, with ongoing talks underway for similar collaborations with Nigeria.

 

These developments unfolded during a visit by a seven-member Indian delegation, led by Additional Secretary in the Department of Commerce, Amardeep Singh Bhatia, to Accra, Ghana, on May 2–3.

 

NPCI International, a subsidiary of India's National Payments Corporation of India (NPCI), has also announced a partnership with the Bank of Namibia to assist in establishing a UPI-like real-time payment system in the African nation.

 

Trade between India and Ghana has seen a notable uptick, reaching USD 2.87 billion in 2022–23 from USD 2.6 billion in the previous fiscal year. However, the trade balance tilts in favour of Ghana, primarily due to India's significant imports of gold from the West African nation, which comprise nearly 80% of total imports.

 

Ghana exports various commodities to India, including gold, cocoa, cashew nuts, and timber products, while it imports pharmaceuticals, agricultural machinery, transport vehicles, electrical equipment, plastics, iron and steel, ethyl alcohol, beverages and spirits, cereals, and made-up textiles from India.