Ghana’s push to join BRICS: An analysis through the energy lens

Ghana's pursuit of joining the BRICS group presents a multifaceted opportunity, particularly in the realm of energy finance. Instead of viewing this as a mere foreign policy choice, it should be recognized as a strategic move to diversify Ghana’s economic and energy financing options. The pivotal role in this endeavor is likely to be played by the New Development Bank (NDB), the energy-focused institution led by BRICS nations.

While the NDB can certainly provide additional long-term financing, it’s crucial to remember that this is not a replacement for existing financing sources, but an addition to the mix. The NDB’s potential contribution could range from renewable energy generation and storage, through transmission and distribution, to gas infrastructure, petroleum storage and logistics, and renewables.

Ghana’s energy sector is currently grappling with a significant financing gap. The government’s fiscal constraints limit its capacity to fund large-scale infrastructure projects directly. Therefore, the NDB’s involvement could be instrumental in mobilising private and institutional capital around a pipeline of bankable, investment-ready projects.

Estimates suggest that Ghana requires around US$4.4 billion for energy sector investments between 2025 and 2030, with approximately US$2.6 billion expected to be sourced from the private sector. The NDB, alongside other institutions such as the World Bank, African Development Bank, International Finance Corporation, bilateral agencies, commercial banks, and institutional investors, can provide this much-needed capital.

However, it’s important to note that the NDB’s role is not limited to injecting money into projects. For capital to effectively flow, Ghana needs to develop a credible pipeline of projects with credible sponsors, robust cash flows, clear risk allocation, and the necessary institutional framework. The NDB has already approved approximately US$3.17 billion across 19 projects in 2025, demonstrating the scale of capital available. But this capital will only flow if there are projects ready for financing.

Moreover, Ghana’s engagement with BRICS offers more than just financial benefits. BRICS economies possess substantial experience in various energy sectors including oil and gas, power generation, renewables, biofuels, battery storage, and electric mobility. Leveraging these relationships can bring technology, expertise, and a broader set of choices for Ghana. The strategic benefit here is not just about finding a new financing partner, but about enhancing Ghana’s negotiating leverage in the capital markets.

In addition to the domestic energy sector, Ghana’s strategic location along the coast, its existing petroleum infrastructure, and its access to the wider West African market present an opportunity for strengthening regional petroleum trading, storage, and distribution platforms. Investment in storage terminals, pipelines, marine infrastructure, refining, and product logistics could help Ghana capture value from regional demand.

This regional opportunity should be considered alongside Ghana’s participation in the African Continental Free Trade Area (AfCFTA). The aim should not only be to meet domestic petroleum demand, but to position Ghana’s infrastructure to serve a wider market.

Lastly, while it’s crucial to attract foreign investment, there’s also a strong case for local value creation. Ghana should look to structure investments in a way that not only brings in foreign capital but also develops local capabilities. This includes deepening local supply chains, building technical skills, developing Ghanaian businesses, and moving progressively from being a recipient of technology to becoming a participant in its development and deployment.

In conclusion, Ghana’s move towards BRICS engagement should be viewed as an opportunity to broaden its energy financing options, rather than a mere diplomatic decision. The NDB and other BRICS institutions could provide crucial capital, technology, and investment support. However, the real test will be Ghana's ability to translate these relationships into capital, technology, investment, and markets.

The ultimate goal should be to create a more reliable, affordable, and secure energy supply, while simultaneously positioning Ghana as a regional energy hub.