As PM Modi embarks on his first-ever visit to Ghana, a resource-rich African nation locked in a standoff with China over illegal gold mining: Here’s what’s at stake
Prime Minister Narendra Modi on Wednesday (2nd July 2025) departed for a five-nation visit to Ghana, Trinidad and Tobago, Argentina, Brazil, and Namibia from 2 to 9 July. PM Modi’s Ghana visit comes at a time when China and Ghana are at loggerheads over illegal gold mining.
At the invitation of Ghana’s President John Dramani Mahama, PM Modi will visit Ghana on 2-3 July. Ghana is a valued partner in the Global South and plays an important role in the African Union and the Economic Community of West African States.
“I look forward to my exchanges aimed at further deepening our historical ties and opening up new windows of cooperation, including in the areas of investment, energy, health, security, capacity building and development partnership. As fellow democracies, it will be an honour to speak at the Parliament of Ghana,” an official statement said.
Taking to X, PM Modi said, “Over the next few days, I will be attending various bilateral, multilateral and other programmes in Ghana, Trinidad & Tobago, Argentina, Brazil, and Namibia. Looking forward to interacting with world leaders and discussing ways to make our planet better.”
Highlighting the significance of PM Modi’s Ghana visit, High Commissioner Manish Gupta said, “We are privileged indeed that the Prime Minister Modi is visiting Ghana for the first time. This is the first visit of the Indian Prime Minister to Ghana in three decades. It is a very historical moment for us, and when it comes to our bilateral ties, this is a very deep-rooted relationship with a rich historical legacy.”
The Indian envoy also emphasised New Delhi’s development cooperation with Accra, noting India’s investments in Ghana through a combination of private business initiatives, government-to-government grants, and concessional credit lines. Notably, India is also set to establish a vaccine hub in Ghana.
“India is among the leading countries taking the charge for the Global South…As the Prime Minister initiated the policy to make the development human-centric and all-inclusive, this is one of the core priorities for the Global South…We have invested nearly two billion dollars through our Indian businesses in this country. Another billion dollars’ worth of investments have come through government-to-government grants, concessional lines of credit, and bias credit programs. Some of the very signature infrastructure came through here through the Indian Partnership, and one of the prime examples you would see tomorrow is the Jubilee House. This has come through Indian Partnership,” he said.
Ghana and China at loggerhead over illegal gold mining
In recent times, tensions have escalated between China and Ghana as Chinese nationals have been involved in small-scale illegal gold mining “galamsey” in Ghana. These illegal activities of Chinese nationals are causing environmental damage and also inflicting economic losses. Illegal gold mining is reported to have caused significant damage across Ghana’s Western, Ashanti and Eastern regions. Ghana has accused Chinese miners of flouting regulations, however, China denies these allegations.
In 2023, a Chinese national Aisha Huang also known as the ‘Galamsey Queen’, was sentenced in 2023 to over four years in prison and fined US$4,000 after returning to Ghana despite a previous deportation.
Ghana issued a mandate in April this year for foreigners to exit the gold market by the month end to curb smuggling and boost revenue through a centralised Gold Board. Previously, multiple license holders competed for gold from small-scale miners. This led to revenue leakage and inconsistent pricing.
Prime Minister Modi’s historic visit to Ghana, first by an Indian PM in 30 years, is seen as a step towards further strengthening an already deep Indo-Ghana ties amid the ongoing China-Ghana dispute. Not to forget, India is a major importer of Ghanian gold. India is likely to position itself as a counterbalance to China’s influence in Ghanian resource sector.
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