India, Ghana agree to operationalise UPI on Ghana's payments system in 6 months

India and Ghana have agreed to accelerate the integration of India's Unified Payments Interface (UPI) with the Ghana Interbank Payment and Settlement Systems (GHIPSS) within six months, the Ministry of Commerce & Industry said. 

The decision was made during a Joint Trade Committee (JTC) meeting held in Accra on May 2-3.

The initiative aims to facilitate seamless and instant fund transfers between the two countries, enhancing ease of payments for users in both regions.

The linking of India's UPI system with GHIPSS will mark another significant step in India's push for UPI adoption across international markets. India's digital payments system is already operational in countries like France, UAE, Sri Lanka, and Mauritius.

Boosting digital connectivity and trade  

During the JTC meeting, both nations discussed the potential of a Memorandum of Understanding (MoU) on digital transformation solutions, the Local Currency Settlement System (LCCS), and the opportunities presented by the African Continental Free Trade Agreement (AfCFTA). 

The LCCS will enable cross-border transactions between India and Ghana in their local currencies, reducing reliance on a third-party currency like the US dollar.

This mechanism aligns with India's broader efforts to promote the use of the rupee in global transactions.

Recently, India and Nigeria agreed on an early conclusion of the LCCS to facilitate trade in domestic currencies and settle capital and current account transactions.

Enhancing bilateral trade and investments

The discussions highlighted several key sectors that could enhance bilateral trade and investments, including pharmaceuticals, healthcare, information and communication technology, agriculture and food processing, renewable energy, power, the digital economy, digital infrastructure, critical minerals, and textiles and garments. 

A business delegation led by the Confederation of Indian Industry (CII) also participated in the meeting.

The JTC meeting was co-chaired by Ghana’s Deputy Minister for Trade and Industry, Michael Okyere-Baafi, and India’s Additional Secretary of Commerce, Amardeep Singh Bhatia. The Indian delegation also included representatives from the Geological Survey of India, EXIM Bank, and the Indian Pharmacopoeia Commission.

India is the third largest investor in Ghana

The bilateral trade between India and Ghana reached $2.87 billion in 2022-23, with India being the third-largest investor in Ghana. Investments span across diverse sectors such as pharmaceuticals, construction, manufacturing, trade services, agriculture, and tourism.