Repeating previous statements, President Nana Addo Dankwa Akufo-Addo has stressed the worldwide economic consequences of the conflict between Russia and Ukraine, with a focus on Africa.
The president believes that the conflict that broke out in February 2022 made matters worse for African economies that were just beginning to recover from the impacts of the COVID-19 epidemic.
Inflation, according to Akufo-Addo, was directly caused by the war’s effect on Africa’s food supply.
Two years ago, the whole globe came to a grinding standstill as people hid from a worldwide health epidemic caused by a mysterious and nasty virus and a terrible global economic collapse. No longer were just underdeveloped countries worried by high budget deficits.
‘By 2021, COVID-19 had caused Africa’s greatest economic downturn in half a century. Unrelentingly, we faced a decline in production and income, rising demands on expenditure, and a rapid growth in public debt,” he said.
Akufo-Addo elaborated on the invasion, saying, “As we dealt with these economic issues, Russia’s invasion of Ukraine burst upon us, worsening an already tough position,” despite Moscow’s insistence that it was a military action.
Africans are experiencing the effects of the conflict firsthand, not simply in shock at the sight of the planned destruction of European cities in the year 2022.
“Everything that is shot, bombed, or sprayed at Ukraine also hurts the African-Ghanian economy. Moreover, he said, “inflation is the number one opponent this year” amid the worldwide economic upheaval.
The government has repeatedly stressed that the recent economic headwinds are due mostly to the devastation caused by the COVID-19 epidemic, the continuing Russia-Ukraine conflict, and the clean-up in the financial sector.
The government’s access to foreign financial markets has been severely hampered as a result of rising living costs, inflation at record highs, and downgrades by rating agencies like S&P and Fitch.
Even the Cedi has been plummeting, forcing the Bank of Ghana to increase its key interest rate in an effort to stabilize the economy.
The administration reached out to the International Monetary Fund in July to begin negotiations for an economic aid package in response to the deteriorating economic situation.
Once a program agreement is signed, Ghana hopes to receive US$3 billion from the Fund over a period of three years.
The government is hoping that discussions may be finalized by year’s end so that the cash can be received in the first quarter of 2019.