Ghana’s economy has been experiencing a significant downturn in recent years, with inflation and corruption reaching alarming levels. The country’s currency, the cedi, has depreciated drastically, leading to a sharp increase in the cost of living.
One of the most pressing issues facing Ghanaians is the skyrocketing price of food. The Consumer Price Index (CPI) for food and non-alcoholic beverages has risen by 37.8% in the past year. This has put a severe strain on household budgets, particularly for low-income families.
‘It’s become impossible to afford even the most basic necessities,’ said Agnes Nyarko, a mother of four shared with Ashantibiz in Kumasi. ‘Food prices are so high that I can barely feed my children.’
Corruption is another major factor contributing to Ghana’s economic woes. The country has consistently ranked poorly on the Corruption Perceptions Index, with the latest report placing it at 136th out of 180 countries.
The government of President Nana Akufo-Addo has been accused of widespread corruption, including allegations of bribery, embezzlement, and nepotism. These allegations have undermined public trust and damaged Ghana’s reputation on the international stage.
The cedi has lost over 40% of its value against the US dollar in the past two years. This has made imports more expensive and contributed to the rise in inflation.
The depreciation of the cedi is a result of a number of factors, including a decline in foreign currency reserves, increased demand for dollars, and the government’s borrowing from abroad.
The outlook for Ghana’s economy remains uncertain. The government has implemented a number of austerity measures in an attempt to stabilize the economy, but these have had limited impact so far.
Analysts warn that if the government fails to address the root causes of Ghana’s economic problems, the country could face a prolonged period of economic stagnation.
‘Ghana is at a crossroads,’ said Kwame Kyei, an economic consultant told Ashantibiz. ‘The government needs to take bold action to tackle corruption, reduce inflation, and boost economic growth. Otherwise, the country risks slipping further into poverty.’
Ashantibiz
