The Vice President of IMANI Africa, Bright Simons says government should be worried about the wild swings in the Exchange Rate.
“Volatility of this type is a sign of fever not recovery,” Simons tweeted on Thursday.
There is some jubilation on the streets as the Ghana Cedi surges against the dollar.
Bright Simons maintained “The people deserve this happiness after the stress of recent months.”
He also observed that the most intriguing thing about this trend, if it continues, is that “speculation becomes super-risky (if you sell, you will struggle to buy). This reduces turnover & suppress liquidity further reinforcing the trend.”
Interbank exchange rates announced by the central bank on Friday, October 16, 2022 saw the Ghana cedi continuing its steady appreciation on the forex market, selling at less than GH¢10 to the dollar.
The Central Bank is making earnest efforts to stem the local currency’s year-long spiral, with a range of measures including a crackdown on unlicensed black market sellers on the streets of Accra among others.
He claims that in order to reach an agreement, nations and institutions that have undertaken debt restructuring have consulted investors and creditors.
However, in the instance of Ghana, the proposed initiative has faced strong opposition because, according to stakeholders, they weren’t consulted.
The Ghana Chamber of Trustees, the Ghana Medical Association, and the Trades Union Congress were among the organisations and unions that strongly opposed the initiative.
Bright Simons in a series of tweets on December 9, 2022, said “1 week after presenting creditors an offer to restructure Ghana’s debt, the govt is facing rejection by those who hold ~70% of the debt:
1. Securities dealers & funds
2. Private banks.
3. Insurance schemes
4. Pension funds
5. Non-resident investors
With 10 days b4 the deadline”
He further said that the “Success rate in sovereign debt restructuring is 90%+ so govt has a long way to go. It may have to contend with a “Dominica situation” where the process ended up taking months. Expert Trebesch shows that virtually all recent restructurings have been co-designed with creditors.
“Thus Ghana’s “take it or leave it” model with no menu of options to suit different creditor circumstances is highly unusual. Even stranger is the total lack of creditor input in the design of the program. Another serious credibility crisis is now brewing for govt,” he added.
The Chief Executive Officer of IMANIAfrica, Franklin Cudjoe, claims that the Ghanaian government has not taken the current economic situation seriously.
According to him, reports from meetings on the government’s planned debt exchange programme does not suggest in any way that the government is committed to tackling the economic crisis head-on.
“I mean the reports that I’ve been hearing from the meetings that are going on doesn’t seem to suggest to me that the government seems to be quite serious at all in dealing with the urgent issues because we’re going to be in this quagmire for the next eight years if not 10, and I don’t see any ray of hope on the horizon given the way we’re behaving already,” he said on JoyNews’ PM Express.
He further bemoaned the government’s lack of sincerity in how it is handling the entire debt exchange programme.
“I mean, there was a bit of insincerity in the way the whole communication between the committee that was set up to look into this debt exchange and the way announcements were made almost immediately because some aspects of the deal had been leaked to the public. So it doesn’t evoke some sense of seriousness,” he said.
Meanwhile, he has reiterated calls for the government to implement austerity measures on itself by drastically cutting expenditure and reducing the size of government.
According to Franklin Cudjoe, the failure of government to even symbolically internalize these austerity measures is partly responsible for the pushback against the government’s debt operation policy.
“Unfortunately, I’m not too sure that keeping things the way they are or should be will take us out of the doldrums. Something ought to give and it started with this so-called debt exchange programme. All we’re asking for is that you need to show some sincerity in asking everybody else to tighten their belts while you turn to loosen yours.
“I think we need to start from that fundamental point that if you’re asking us who were not party to the debt iceberg that you have created, the only way to have a thawing of the iceberg is for you to also be seen to be melting, having sunshine over some parts of the iceberg really.
“So I’m not too sure we’ve reached a point where you say you’re no longer going to listen. I think essentially what it is, is how you’re listening and how you’re going to practicalise what you’ve heard. And that’s where we’re at,” he said.
Founding President of IMANI Centre for Policy and Education, Franklin Cudjoe, has been a victim of the current debt restructuring programme announced by the government on December 4, 2022.
He says he has suffered a “haircut” of over ¢100,000 on his investment with EDC.
Mr. Cudjoe said the loss is due to the Marked to Market value currently being implemented.
He disclosed this in a Facebook post on Wednesday.
“I have been given a haircut of a little over 100,000 cedis in my EDC investment made over the years based on Marked to Market value.
“My fund manager adds a note rather painfully, that ‘Investors that choose to remain in the fund until Ghana’s macroeconomic health and bond prices improve are not likely to realize these losses.’,” he posted.
Mr. Cudjoe in the same post added it will take at least 8 years for the current “economic mess” to be rectified.
He explained this requires the current government and succeeding ones to focus on solving problems rather than achieving political points.
“Folks, based on IMANI’s analysis of government handling of finances from 2010 to 2022, leading to the publication of IMANI’s Fiscal Recklessness Index, this means waiting for at least 8 years for governments not to be so reckless in pretending to manage the economy.
“And this will be hoping against hope. Until we fix our broken political system that rewards cheap sloganeering with limitless tax and borrowed funds to be splurged at will, we are going no where.,” he added.
Following the country’s worrying debt stock and interest payments, government has announced a domestic debt exchange programme.
The programme which was announced by the Finance Minister, Ken Ofori-Atta on Sunday, aims at realigning some domestic bonds.
This, when achieved, will give the government fiscal space ahead of the bailout package from the International Monetary Fund (IMF).
Mr. Ofori-Atta in a subsequent presser on Monday, said the government was inviting “holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”
The domestic debt exchange programme, which is a Government initiative seeks to classify domestic bonds into four categories to create fiscal space as part of preparations to qualify Ghana for an IMF facility.
Kofi Bentil, Senior Vice President of IMANI Africa, has supported the state’s decision to deal with Capital Bank founder William Ato Essien over the bank’s failure.
According to Bentil, Section 35 of the Courts Act, which addresses agreements between the state and accused parties, was crucial since it made it possible for the state to recover embezzled cash.
He stated that there are cases where people steal money, go to jail, and then return to enjoy their bounty on the December 3 edition of Joy FM’s Newsfile show.
“There is good reason in philosophy, in what is proper and practical for us to have a Section 35, because there are people who actually steal state money and want to go to jail for five, even ten years, come back and enjoy it,” he submitted.
“Yes I disagree with him because Section 35 is a very good provision for those of us who are in policy, who look at what goes on in this country, and the millions that we lose and the money we don’t recover. You see, over the decades, over the years people have come to realize that indeed without 35 it is lucrative rather to steal.
“So indeed the argument is counterproductive against what was said that because of (section) 35 people are going to steal, it is without 35 that people steal. And we’ve seen some, I’ve seen some, I don’t want to go into the details.
“The point here is that with 35 you know that if you steal you can be asked to cough up the money and in this particular case if you go through the numbers what is being coughed up is quite substantial given what is being admitted,” he explained.
What does Article 35 of the Courts Act says:
Section 35 of the Courts Act, says, “Where a person is charged with an offence before the High Court or a Regional Tribunal, the commission of which has caused economic loss, harm, or damage to the State or any state agency, the accused may inform the prosecutor whether the accused admits the offence and is willing to offer compensation or make restitution and reparation for the loss, harm, or damage caused.”
Background:
On December 1 when Justice Eric Kyei Baffour was ready to deliver judgement on the Ato Essien case, the state informed the court that it had reached a settlement where the accused was to repay a total of GHC90 million cedis to the state.
The state relied on Section 35 of the Courts Act but the judge in comments before agreeing to adjourn the reading of his judgment said the route the state had resorted to seems to one that may be making crimes attractive.
Justice Kyei Baffour went on to reject the terms of settlements reached between state prosecutors and Ato Essien.
According to court records, the Judge disagreed with the use of Section 35 of the Courts Act to reach a settlement agreement, explaining why it does not apply to the instant case.
Alfred Tuah-Yeboah, the deputy Attorney General on the same programme explained that the AG’s office was ready to abide by whatever decision the court arrived at but also that the state was not compromised in agreeing to a settlement.
Mr. Bentil brought out the gap between employees on the single-spine compensation structure and officeholders under Article 71 when speaking on the Joy Newsfile show.
He continued by saying that the nation’s political elite has consistently failed to address the issue of public sector wages.
“So if you take the civil and public servants, the government workers, whatever we’re paying them, if they were producing well enough, it will not be a net loss to you, it won’t be a problem, it will be a fraction of what they’re making,” he added.
Kofi Bentil further emphasized that the political leadership must again be blamed for the low productivity in the public sector.
“It’s because of the leadership and the political messing up of that space. It’s because people are appointing political misfits into office. It is simply because the leadership there is poor at every level.”
There is a deadlock between government and the labour unions who are demanding over 60% increment in the base pay of civil and public servants.
A proposal by government to increase salaries by 18% has flatly been rejected by Organised Labour.
According to the labour unions, their demand is influenced by the current economic crisis and the depleting purchasing power of their current salaries.
Senior Vice President of IMANI Africa, Kofi Bentil says the unrest in the labour sector is the doing of government.
The lawyer, who was speaking on the issue of disparity between Article 71 officeholders and Single-Spine workers, said the country has failed when it comes to “dealing with public sector wages over time”.
Speaking on JoyNews’ Newsfile, he said none of the problems caused can be attributed to public sector workers.
“Zero of the problems are with the public and civil servant. All the problems are with the leaders. When you employ somebody, the person’s wage is not a net loss to you because the person helps you to make more money than you pay them.”
“So if you take the civil and public servants, the government workers, whatever we’re paying them, if they were producing well enough, it will not be a net loss to you, it won’t be a problem, it will be a fraction of what they’re making,” he said.
Mr. Bentil argued that politicians and government officials are “messing up” the public sector.
He said proof of the above was the fact that workers from the public sector work efficiently when they are in the private sector than they do in the public sector.
“The public sector has about three times more qualifications than the private sector. And whenever they move, whether to international organizations or into the private sector, they produce massively. So why don’t they get the same levels of productivity when they’re in the civil and public service?
“It’s because of the leadership and the political messing up of that space. It’s because people are appointing political misfits into office. It is simply because the leadership there is poor at every level.”
He reiterated that the country should not blame the public sector workers for low productivity.
Public sector workers have been raising concerns over the huge gap between the salaries of Article 71 officeholders and Single-Spine workers.
By 2016, the difference between average salary earners of these two groups amounted to ₵17,088 with single spine workers taking as low as 1,128 as against Article 71 holder’s 18,211.
In view of this, organized labour recently rejected a proposal of 18% salary increment.
The group which consists of unions such as; GNAT, CLOGSAG and TUC stated that they will not accept any increment less than 60% although they are demanding a 65% increment.
He claims that in order to restore macroeconomic stability, the government is currently seeking an IMF program, and that investors and citizens around the world are instead watching for indications of a viable fiscal plan.
Bright Simons raised alarm about the government’s plan to impose higher consumption taxes on already-burdened citizens in a series of tweets on November 23.
Bright Simons has also questioned whether an evenly split Parliament, especially the Minority side, will throw their support behind a budget that seeks to impose more taxes on already burdened citizens.
He also indicated government’s inability to consult civil society groups and other relevant stakeholders ahead of the 2023 budget before lawmakers on November 24, 2022.
“The government of Ghana intends to present its budget for 2023 tomorrow. Given the intensity of the economic crisis, investors globally are looking for signs of a credible fiscal plan out of the mess. The government intends to increase consumption taxes. The Parliament is evenly split,” he wrote.
“Anyone who reads bbsimons.com know my analysis of the biggest challenge ahead in resolving the crisis: social and political consensus. It is thus shocking that tomorrow the government expects the Opposition and civil society to support a budget it has not consulted anyone on,” Mr Simons added.
Meanwhile, Finance Minister, Ken Ofori-Atta, has been under intense pressure from members of the governing New Patriotic Party to resign over the current economic challenges which has impacted almost all economic indicators.
The Minority in parliament have also filed a censure motion against Ken Ofori-Atta on some seven grounds.
President of policy think tank, IMANI Africa, Franklin Cudjoe says the Finance Minister, Ken Ofori-Atta was given a fair hearing to respond to allegations leveled against him by the Minority.
This comes on the back of a motion of censure filed by the Minority in Parliament to sack the Mr. Ofori-Atta for what they describe as poor management of the economy.
Speaking on Citi FM/TV‘s news analysis programme, The Big Issue, Mr. Cudjoe said the Finance Minister who took his turn at the ad-hoc committee of Parliament on Friday has been able to clear himself with his explanations.
“I think that somehow the Minister acquitted himself with the explanations he gave simply because of the nature of the accusations or the grounds that were made against him. Some of them were on policy, others were on issues around divergence that constituted deliberate breaking of the law.”
“There were however a few explanations that were problematic, especially the ones that have to do with the cathedral. The grounds were a bit narrow, so it afforded him the opportunity to explain himself quite well, so he could have addressed them head-on.”
Kofi Bentil, the vice-president of IMANI Africa has described the decision by the Bank of Ghana (BoG) to halt forex support for imports for some eight items as a bad move, which will badly affect the poor.
The items include rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.
The move, according to the central bank, is in accordance with the president’s directive, issued in his recent address on the Ghanaian economy, made to the nation on Sunday 30 October 2022.
An electronic message from the Bank of Ghana to banks in the country said: “In accordance with the president’s directive, issued in his recent address to the nation on the Ghanaian economy on Sunday 30 October 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods.”
“Please be advised and act accordingly,” the Bank said.
Reacting to the development on Facebook, Bentil said the policy will force importers to rely on the open market for forex, adding that it will drive up prices of goods.
“Another round of policy incoherence has been unleashed. We will all suffer, especially the poor.
“You support essentials whose price increase will affect the poor. Toothpicks, pasta, fruit juice, bottled water and ceramic tiles are NOT essential. You don’t need to support their imports.
“If you withdraw support. You haven’t reduced demand, you’ve just created shortage, so The importers will buy FOREX from the open market and drive-up FOREX rates. And that will also drive-up prices of these essentials and everyone will suffer especially the poor,” Bentil posted.
He maintained that if the rumors were accurate, it would eventually have strengthened the cedi.
In his article titled “Ghana Should Not Set Up the IMF to Fail,” the IMANI Africa Vice President made the statement.
Bright Simons noted that the country’s current inflation rate is evidently a reason for the cedi’s depreciation as people seek to find ways to preserve the value of their assets.
He said: “there are multiple factors involved with complex interrelationships… the linkage becomes stronger when the effects are so pronounced.”
While many have attributed the rise to factors such as speculation and the activities of black-market operators, Bright Simons in the article said, “The government’s focus on speculators is wrongheaded because the conditions exist for the vast majority of rational economic actors to want to hedge against the currency. To focus one’s energies in such circumstances on the smaller number of actors with the financial heft, risk appetite and risk capital to profit from the situation is distracting.”
“Sometimes those speculating are following the herd or trying to find the right bandwagon. But profit is a major intention. In that sense, speculators can actually be stabilizing if they sense that the local currency will rise in the future and start to dump their inventories of foreign currencies forcing the rate to align with the long-run equilibrium rate. Many theorists even go as far as argue that speculation at variance with fundamentals is always loss-making and thus unsustainable,” he said.
He however calls on the government to cut wasteful expenditure and “lay a good ground for securing an IMF deal.”
An update on Ghana’s economy is overdue. So here goes. This essay is a series of notes to be read leisurely. Some key takeaways:
– Speculation is NOT the reason for the Cedi’s woes.
– The govt is not laying good ground for the IMF deal.
– Govt, cut WASTE!https://t.co/dAML9CIMbC
Senior Vice President of IMANI Africa, Kofi Bentil, has urged managers of Ghana’s economy to as a matter of urgency begin talks with the World Bank and friendly nations for economic support even as it looks to get a bailout from the International Monetary Fund (IMF) in the shortest possible time.
Mr Bentil contends that the balance of payment support expected from the IMF will not be enough to deal with Ghana’s current economic crisis.
“We need more than the IMF. We need to be speaking to the world bank and friendly nations for concessionary loans to shore up the economy and then get IMF to tide us over to health. We should be speaking to them by now, IMF alone can’t help us,” he argued.
Government has had to seek an IMF bailout after months of dithering and seeking desperate to tax its way out of its inability to meet debt repayment obligations.
The Finance Minister, Ken Ofori-Atta who had ruled out seeking an IMF bailout is currently leading negotiations to secure some three billion dollars for the country to heal resolve balance of payment challenges.
But Mr Bentil is of the opinion that the expected there billion dollars will be insufficient given the dire straits of the country.
Ghanaians are reeling under a harsh economy that has left vulnerable households unable to meet basic daily expenditure as inflation skyrockets and the currency continues a free fall against the dollar.
Vice President of IMANI Africa, Kofi Bentil, has called on the Government of Ghana to look beyond the International Monetary Fund (IMF) to address the nation’s current economic challenges.
The Government of Ghana in July this year began formal negotiations with the IMF for economic support, but according to Kofi Bentil, the government should engage other international financial organisations like the World Bank if it will succeed in managing the current economic challenges.
“We need more than the IMF. We need to be speaking to the world bank and friendly nations for concessionary loans to shore up the economy and then get IMF to tide us over to health. We should be speaking to them by now, IMF alone can’t help us,” he wrote in a Facebook post.
Ghana, over the past months, has experienced serious economic challenges plummeting the country into severe price hikes amidst a poorly performing cedi on the exchange market.
The government, in its bid to manage the situation, is seeking an IMF programme.
The Director of IMF’s African Department, Abebe Aemro Selassie, in a recent media engagement, stated that Ghana needs to show proof of debt sustainability in order to merit an economic support programme.
Kofi Bentil, Vice President of Imani Africa, has eulogised Vice President Alhaji Dr Mahamudu Bawumia on the occasion of his 59th birthday.
Bentil, who has been a strong critic of the Vice President and the government at large, described the second gentleman of the land as a strong tree that will stand through every storm.
He noted in a Facebook post with a photo of the Vice President that he [Dr Bawumia] is made of the right stuff.
“The strongest trees are those that bend in the storm but don’t break. You are a strong tree. You will stand through every storm.
“When it’s all done you will wave your leaves and branches in victory when the calm comes after the storm.
“I will be there clapping. I won’t be surprised. I know you’re made of the right stuff.
“Happy Birthday champ. You are blessed. It is clear,” Kofi Bentil‘s October 7 post concluded.
President of IMANI Africa, Franklin Cudjoe says it is unlikely Traditional Authorities will discontinue their interests in an entreprise they benefit from despite Akufo-Addo meeting them over the galamsey menace.
President Akufo-Addo says the protection of the lands against illegal small-scale mining also known as galamsey should be the responsibility of the traditional rulers and the government.
Addressing the House of Chiefs at the Ashanti regional capital Kumasi on Wednesday, October 5, 2022 President Akufo-Addo indicated that ownership of the lands rests with both the government and chiefs hence protecting it should be a collective one.
“80 percent of the lands in this country continue to be under your custody, much of it having been acquired through the blood and sacrifices of your ancestors. The remainder of 20 percent which I hold in trust of the people of Ghana, derived from state acquisition from you.
“What this means is that ultimately, the welfare of the state of the lands is our joint responsibility, although by statute the minerals in the soil belong to the President in trust for the people,” the President explained.
He also pleaded for the support of the chiefs in applying stringent measures to curb the galamsey menace in the country.
Commenting on Akufo-Addo’s meeting with the House of Chiefs over the galamsey menace, Cudjoe who described the traditional rulers as the godfathers of galamsey said they[Chiefs] have a vested interest in the entreprise hence do not share the same sentiments with the President on the national crusade against illegal mining.
“Galamsey just got another bad name today. The godfathers assembled to disown their own child but will continue benefitting from its existence,” he wrote in a Facebook post.
Senior Vice President of IMANI Africa, Kofi Bentil, has said that President Akufo-Addo’s meeting with Metropolitan, Municipal and District Chief Executives (MMDCEs) and chiefs on the fight against illegal small-scale mining (‘galamsey’) will have no impact.
According to him, the meeting will have no effect because the president has all the powers needed to fight the menace but has chosen not to use same.
Speaking in a Joy News Interview monitored by GhanaWeb on Wednesday (October 5), Kofi Bentil added that the president organised the meeting just to show that he is doing something in the fight against ‘galamsey’.
“It (the meeting) will not make any difference. It is the president that has all the power. So, when you have the power to do what you need to do and you go round suggesting that you are seeking the assistance of other people, who do not have any power or don’t have any real power to deal with the matters, it is just window dressing.
“I think he wants to show some activity. Activity is not necessarily progress. Unfortunately, I don’t think it is going to yield anything,” he said.
Kofi Bentil further stated that chiefs and MMDCEs whom the president met might be involved in ‘galamsey’ and they will not be putting in the needed efforts or help with the needed information to stop it.
He added that the president needs to call for a state of emergency if he truly wants to stop ‘galamsey’.
“That is why again I go to the call of Occupy Ghana to impose a state of emergency. The president can actually impose a state of emergency and go to Parliament even after the fact or can go to Parliament and request that it should be imposed now. If he doesn’t do it then he doesn’t want to do it because he can do it,” he said.
Meanwhile, President Akufo-Addo, during his meeting with chiefs and MMDCEs in Kumasi, urged chiefs across the country to get themselves involved in the fight against illegal small-scale mining since they are the custodians of lands in the country.
“80 percent of the lands in this country continue to be under your custody, much of it having been acquired through the blood and sacrifices of your ancestors. The remainder of 20 percent which I hold in trust of the people of Ghana, derived from state acquisition from you.
“What this means is that ultimately, the welfare of the state of the lands is our joint responsibility, although by statute the minerals in the soil belong to the president in trust for the people,” he noted.
By the way, he added, the ECG software issues serve as a lesson to Ghanaian authorities to THINK CRITICALLY as they continue to promote the misguided notion of consolidating all municipal services into a single Ghana Card database.
The nation will shut down if a zero-day or ransomware exploit is used!”
For the past three days, consumers have been left stranded due to technical hitches the Electricity Company of Ghana is facing.
This has led to the disruption of the activities of both households and businesses.
Scores of customers have been spotted at various ECG retail shops in a bid to buy prepaid electricity.
The Public Utility Regulatory Commission(PURC) has assured customers that the commission is working closely with the Electricity Company of Ghana(ECG) to resolve utility service struggles.
The ECG announced on Thursday, September 29, 2022, that it is facing a technical challenge that has affected its prepaid metering systems. The electricity service provider said the challenge has interrupted the purchase of electricity credit.
The PURC, in a statement also issued on Thursday, said that the commission has noticed the concerns raised regarding vending problems and promised to work with the ECG to find a quick resolution to the matter.
“The Public Utilities Regulatory Commission(PURC) has noticed with concern, challenges experienced in vending, by consumers on ECash and PNS Metering Systems of the Electricity Company of Ghana(ECG). The Commission is closely monitoring the situation and in full discussions with the service provider to address the issues,” the statement read.
“The Commission wishes to assure all affected customers of its commitment to ensuring the delivery of a safe and reliable utility service provision and to have the issue resolved quickly,” it added.
IMANI-Africasays that the government must make difficult decisions on the impending restructuring of its public debt.
Leadership, in the opinion of the policy think tank, would be essential in fostering confidence along this route.
“Like all burdens, this one too will become lighter if it is shared collectively by those it affects, the people of Ghana. No time is better than now for the government to show its mettle in dispelling mounting skepticism and cynicism about its commitment and capability to get the debt crisis response right.
“Failure will have consequences too dire to contemplate,” IMANI said in its preliminary findings from an analysis of a potential sovereign debt restructuring in Ghana.
Finance Minister Ken Ofori-Atta has indicated the government is poised to tie down an IMF-supported arrangement before November ahead of the 2023 budget.
Mr Ofori Atta told reporters in the capital, Accra, on Wednesday that the 2023 budget will be presented in November, leaving the government with less than two months to wrap up an agreement with the Washington-based lender.
“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt-sustainability analysis,” he noted.
Ghana will start to engage with local and foreign investors to help fast-track negotiations with the IMF for as much as $3 billion to support its economic program.
The governmentwill announce the names of five members of a committee put together to lead talks for national consensus building in the coming days, the minister said.
Meanwhile, the government is racing against time as key aspects of the IMF program are billed to reflect in next year’s budget.
President Akufo-Addo, during his speech at the United Nations (UN) General Assembly, said that the Russia-Ukraine War was having a devastating impact on Ghana and other African countries.
“As we grappled with these economic challenges, Russia’s invasion of Ukraine burst upon us, aggravating an already difficult situation. It is not just the dismay that we feel at seeing such deliberate devastation of cities and towns in Europe in the year 2022, we are feeling this war directly in our lives in Africa.
“Every bullet, every bomb, every shell that hits a target in Ukraine, hits our pockets and our economies in Africa. The economic turmoil is global with inflation as the number one enemy this year,” the president said.
But speaking at the 2022 Baah-Wiredu Lecture in Accra, Bright Simons argued that the president’s assertion is not backed by data.
He intimated that there is evidence that Ghana is performing worse than other Africa surrounding it which means that there is more to the country’s challenges than the Russian-Ukraine war.
“When we start to do the comparative analysis, you cannot use some other factor that has had a uniform effect. I tried my best to give you factors that could have shown that Ghana has been affected more, and as you saw I struggled with the data.
“I went to jobs, I went to growth, I went to how many people were killed and none of it bears out that we were affected worse. So, if you are the worse performing in terms of currency, you cannot complain and say it is because of some factor that has affected everybody uniformly. It is as simple as that,” he said.
Founding President and Chief Executive Officer of IMANI Africa, Franklin Cudjoe, has cautioned the opposition National Democratic Congress (NDC) to be measured in their hope that the 2024 election year is a done deal and that they will by all means win power.
According to him, it will take hard work and vigilance from the party to pull off the magic wand in the election year.
In a post on his social media handle, Franklin Cudjoesaid the government can turn things around before 2024 consequently giving the NDC a run for its money.
His comment comes on the back of the recent rising cost of living and an economic downturn which has compelled the government to seek assistance from the International Monetary Fund.
“Meanwhile the major opposition party, the NDC should not assume 2024 is a done deal. Harder work, a very different path to the current one and VIGILANCE. The NPP may turn things around by 2024,†Franklin Cudjoe tweeted.
Ahead of the 2024 elections, the governing New Patriotic Party (NPP) has vowed to break the 8-year power cycle jinx under the Fourth Republic, where power changes hands every eight years between the NDC and NPP.
The NDC is lacing its boots to upend the governing party in 2024 in the wake of an economic crunch.
