Ghanaian president Nana Akufo-Addo, explained to the Nation the slew of measures his government would take to see its way out of the worst financial turmoil the country is facing. He also spelled out various steps to be taken to support domestic production
Ghanaian president Nana Akufo-Addo explained to the Nation the slew of measures his government would take to see its way out of the worst financial turmoil the country is facing. He also spelled out various steps to be taken to support domestic production.
Nana Akufo-Addo announced a 30% cut in budget discretionary expenditures. The measures also will see cuts in salaries of the President, Vice President, Ministers, Deputy Ministers, and political office holders. The president was candid in his remarks and admitted that the present situation was difficult and complex and exuded optimism that the administration would turn the crisis into an opportunity to resolve not just the short-term, urgent problems, but the long-term structural issues that continue to face the fragile economy.
The rise of the Covid-19 pandemic ushered in an era of disillusionment; the president admitted. The country had to borrow money at a very high cost. This, in turn, brought growth to a halt. Those difficulties were exacerbated by the impact of the Russian-Ukrainian conflict on food and energy prices worldwide. Inflation in the country is rising to over 37%, while the currency is depreciating at an unforeseen pace: Since the beginning of the year, the cedi has lost over 40% against the dollar.
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Debt has soared because of the combined impact of the Covid-19 pandemic and the Russian -Ukraine war. Presently, debt accounts for nearly 80 % of the country’s gross domestic product (GDP). Ghana is demanding a bailout package from the IMF. This is incidentally the 17th time the west African country has demanded an aid package from the IMF since its independence in 1957. Authorities say the aid is primarily meant for repairing the short-term public finances and restoring the balance of payments.
