Until recently, Ghana was considered a macroeconomic and political model in sub-Saharan Africa: in 2019, the World Bank described it as ‘a rising growth star’.
However, in May 2023, the IMF signed a new bailout agreement worth $3bn over three years. It’s a program that’s widely seen as a band-aid for a host of long-term economic challenges facing the country – a net importer – including a balance of payments deficit.
The nation’s public debt is nearly as large as its annual economic output, inflation has been running at over 40% in 2023 and Ghana’s currency, the Cedi, has fallen by more than 45% against the dollar since January 2022.
The bailout will do little to address poverty, create new jobs, boost salaries or address the rising cost of living facing Ghanaians.
Source : Africa Global Funds
