In Ghana, the government of President Nana Akufo Addo has taken major steps to recover the country’s economy from the impact of Covid-19 and the current rise in crude oil prices caused by the war in Ukraine. Indeed, apart from injecting US$2 billion (CFAF 1,193 billion) into the economy, Ghana has reduced the salaries of government appointees, including ministers and heads of public enterprises, by 30%. Ken Ofori-Atta, Minister of Finance, said the measures are intended to help the country recover from the impact of the global crises. “Developed and developing countries alike are scrambling to make decisions to get their economies back on track, after the devastating impact of Covid-19 (…) and the ongoing Russia-Ukraine war,” he tolda press conference in Accra.
In addition to these special measures, the government has also announced an end to foreign travel for members of the government and the purchase of imported vehicles until the end of the year. As a result, it hopes to save around 360,000 euros or 236 million CFA francs. At the same time, the Minister presented In addition, the government has announced “a further 10% reduction in public spending, as well as a reduction of more than 1% in the price of petroleum products”. This giant west African country is struggling to cope with the rising cost of living, due to inflation and the falling value of its currency, the cedi.
Lower fuel prices
In addition, fuel prices decreased by 1.6% nationwide. On Monday, Ghana’s central bank also raised the interest rate on loans to commercial banks to 17%. According to experts, this will increase the cost of borrowing for individuals and businesses. In recent months, the West African country, producer of cocoa and gold, has been trying to cope with its growing public debt burden (nearly 80% of its GDP) by imposing new taxes. Like some countries in the sub-region, Ghana is struggling to recover from the recent spike in oil prices and the high cost of living caused by the Russian invasion of Ukraine.
Posted by Afro impact
