Story: Franklin Asare-Donkoh
The Vice President of the Republic of Ghana, Dr. Mahamudu Bawumia has blamed the country’s economic woes on the turf war between Russia and Ukraine.
He reiterated that Ghana has been directly affected by the ongoing geopolitical tension between Russia and Ukraine.
Addressing TESCON members on Thursday, April 7, 2022, Dr. Bawumia explained that Russia accounts for some 30% of Ghana’s imported grains, 50% of flour, and 39% of fertilizer.
“The increase in commodity prices has been exacerbated by the Russia-Ukraine conflict. Russia and Ukraine together account for 30% of the global wheat export. The longer the conflict the greater will be the disruptions to the global food supply. The country is also likely to slow global growth.
According to the AfDB the price of wheat has shot up by 62% since the war begun. The price of fertilizer is up by 300%, and the price of maize is up by 36%, since the war began. Here in Ghana, 60 % of our total imports of iron ore and steel are from Ukraine.
Russia accounts for some 30% of Ghana’s imported grains, 50% of flour, and 39% of fertilizer. So, we are directly affected by the Russia-Ukraine war. Unfortunately, we do not know when it will be over. The global increase in fuel prices is causing hardship,” the Vice President of the Republic of Ghana maintained.
He further admitted that he recognizes that the country is going through some challenges at the moment.
FULL VIDEO: DR. BAWUMIA SPEAKS ON THE ECONOMY
The Vice President of the Republic of Ghana, however, indicated that some measures have been introduced by the government to ameliorate the hardship the people are going through.
He said “from the man on the streets to the business mogul, the health of the economy is the fundamental instrument”.
“The economy is what we feel in our pockets. I acknowledge that we are going through difficult times, this is the reality. Our economy is experiencing rising prices of fuel and virtually all commodities. Prices are on the rise.
These have come as a surprise to many Ghanaians and many questions have been asked about the State of the economy. Do these questions include what has happened to the fundamentals? Why are the prices of goods and services increasing so fast? Why has the Cedi depreciated so fast this year?
What programmes does the government have to show for the higher debt? Where is the new economy that the government promised to build? I will address these questions based on data and facts.
“I will admit where there have been challenges and we will all leave here with a better State of the economy, where we have come from, and where we are going,” he added.