On Monday, July 25 at 19:30 GMT:
Ghana’s economic system has been crippled by the influence of the coronavirus pandemic, rampant inflation, the warfare in Ukraine and a depreciating foreign money. Now analysts warn that the nation is near a disaster.
In Could the central financial institution governor mentioned Ghana confronted an total steadiness of funds deficit of $934.5m within the first quarter of 2022, in contrast with $429.9m in the identical interval final 12 months. Development slowed to three.3 p.c within the first quarter of 2022, and inflation hit a report of 27.6 p.c in Could.
Critics say the federal government has recklessly managed its funds with extreme borrowing. The nation now spends a few third of its expenditures simply servicing debt alone, not together with principal repayments.
In a U-turn from earlier statements, this month the federal government introduced it might maintain formal talks with the Worldwide Financial Fund (IMF) a few assist bundle. This got here simply days after a whole lot of residents took to the streets protesting the mounting financial hardships. It’s the second time within the previous three years that Ghana has turned to the IMF for assist.
Protest leaders from the Come up Ghana group in June mentioned they have been in opposition to the “persistence and astronomical hikes in gasoline costs by the Akufo-Addo/Bawumia authorities”, the “grabbing of State lands’” by authorities officers, and the introduction of a 1.5% tax levied on all digital transactions. They’re additionally calling for a full bi-partisan parliamentary probe into COVID-19 expenditures.
There may be additionally dissent inside the authorities on whether or not looking for help from the IMF is the very best transfer ahead. A number of unions have criticised the transfer, saying it can create circumstances which can be unfavourable to Ghanians. One economist has mentioned Ghana will develop into “ungovernable” if the IMF bailout requires wages to be frozen.
On this episode we’ll discuss Ghana’s worsening financial disaster and ask what IMF help means for Ghanaians.
On this episode of The Stream, we’re joined by:
Theo Acheampong, @mytheoz
Economist and political threat analyst
Affiliate Lecturer, College of Aberdeen
Head of Africa Analysis & Africa Economist, Renaissance Capital, and Managing Director at Renaissance Capital
Sammy Gyamfi, @sammygyamfi2017
Nationwide Communications Officer, NDC
Protest chief with Come up Ghana