How Ghana’s rising star plunged into an economic crisis - BBC Africa

In 2019, Ghana had the world’s fastest-growing economy after it doubled economic growth.

In 2023, prices of goods are rising by 40% down from 54% in December 2022, which was the highest in 2 decades.

As a result, the country which the World bank described as a rising star saw an unprecedented 3-day demonstration led by mainly young people who say government has mismanaged the economy.

But what caused the slide?

Produced and presented by Daniel Dadzie
Edited by Aaron Akinyemi

#ghananews #costofliving #ghanaeconomy

[momo]

To oversimplify, Ghana's problems are similar to Pakistan and Sri Lanka. During the relative good times 2010-2019. The government wasn't being fiscally prudent and primarily spent this new debt on day to day spending rather than on investments in infrastructure, or other productivity boosting measures. Also commodity exporting countries should always be saving for a rainy day as global commodity prices will rapidly fluctuate.

[WillieFungo]

African growth is always illusory because it is not based on productivity increases and globally competitive manufacturing.

[sabakhayee]

A total mismanagement, lack of priorities, and corruption.

[boopfun]

Kleptocracy, nepotism, cronyism, family and friends, unprecedented corruption at the highest level of governance.

[nyfingers]

As a Ghanaian I’m rather livid listening to the President blame the Ukraine-Russia war for his failed policies that have crippled the economy in our country. So much overspending and unaccountability from top-down yet he sits on his moral high horse to demand reparations from the west? This is sickening. Always finding someone to blame for the problems we create and never looking in the mirror. This is really annoyingly annoying.

[djamaltanko]

Corruption at the highest level.
Lord save Africa from the hands of this wicked old men 🙏

[delaboadum]

The biggest reason for the fall is corruption... If you think you know what corruption is, wait till you are in Ghana.

[TeddyBongo-zfih]

This fluff piece by the BBC doesn't even scratch the surface of what's really going on in Ghana.

[CodingExpress]

Don't forget that in 2007 Ghana Redenominated their currency - they basically removed 4 zeroes. So the economic prosperity wasn't actual. In fact, by making their currency closer to the dollar, it allows people to import stuffs instead of manufacturing, it also makes it a good place for foreigners to go and earn Cedis, buy USD and move out, what now led to lack of USD in the country. Ghana was formerly called "Gold Coast", but currently has one of the lowest gold reserves in Africa! The truth is, the leaders were playing a ponzi scheme with the economy - looking good outside in order to get funds, but using the money to buy imports, and the process repeats...until it reached a breaking point caused by COVID/Ukraine war!

[oladeleoloruntoba]

When u mix political ignorance with unyielding arrogance what you get is political blindness

[anthonyferris]

Ghana got independence in 1957, as did Malaysia and both countries were roughly on an economic par. Colonial records show that in the early 1950s, Ghana and Malaysia were equally dependent on exports of raw materials. Today, Ghanaians get by on one tenth of what Malaysians earn and the country is still exporting raw products like cocoa and gold, while Malaysia makes its own cars and boasts cities of skyscrapers

[theitechlab]

I was living in Ghana in the late 2010s (I’m from the US), came home just before COVID, and got to see the massive growth of the country in that period. To see it basically take a 180 degree turn and see how much worse off the economy is makes a person sad.

[ciarankelly]

I am saddened to hear this as Ghanaian people deserve better- a country with so much natural resources they talk of famous Belgium/ Swiss chocolates, it’s from Ghana!!

[syyke]

I hope the Kenyans can learn from this, we are not going in the right direction

[voss]

It's almost like just looking at economic growth isn't how you tell how a country is really doing

[kuchojoe]

When fools becomes leaders this is what happens. I just pray the next election Ghana will have a good

[classicpianoacademygh]

Congrats to my former Chapel Hill pupil, Daniel Dadzie. I'm proud of you

[wiggly]

I’m trying to figure out how Ukraine is responsible for Ghana’s woes. The diet of traditional Ghanaians isn’t wheat and very little of it is maize and maize and wheat are 2 of the main exports of Ukraine . Ghana should be able to produce enough food to feed its citizens. To be honest I don’t even understand why so many African countries are depending on Ukraine/Russia for food when a significant majority of them don’t have traditional diets that are dependent on those food exports.

[kemwyfi]

Great job Daniel. Proud seeing you soar higher and higher. As for our country our dependence on foreign handouts and corruption are our daemons. The citizenry also have developed a taste for imported products. The result is a low GDP being a denominator on a high debt.

[Chuby_ubesie]

Thank God they didn't blame the West like most African countries do. Corruption is our biggest problem in Africa, we are the architects of our own failure simple and short