World Bank Finally Drops Bad News On Ghana; See What They Said That Every Ghanaian Should Be Worried
The World Bank has classified Ghana as a high debt distress country as it projects the nation’s debt to Gross Domestic Product (GDP) of 104.6% by the end of 2022.
According to its October 2022 Africa Pulse Report, debt is expected to jump significantly, from 76.6% a year earlier, amid a widened government deficit, massive weakening of the cedi, and rising debt service costs.
It is also forecasting debt to GDP of 99.7% and 101.8% of GDP in 2023 and 2024, respectively.
The report is coming at a time the Bank and the International Monetary Fund (IMF) are conducting a Debt Sustainability Analysis on the country. A country which is highly debt distressed is unable to fulfil its financial obligations and therefore debt restructuring is required.
“Debt is expected to jump in Ghana to 104.6% of GDP, from 76.6% a year earlier amid a widened government deficit, massive weakening of the cedi, and rising debt service costs. The country’s debt is expected to remain elevated at 99.7% and 101.8% of GDP in 2023 and 2024, respectively. Tightening of financial conditions globally along with the fall of the domestic currency widened the sovereign spread by 233 basis points since December 2021”.
As a result, the country lost access to international markets”, the report mentioned.
The World Bank further stated that Ghana needs $1.5 billion in assistance from the IMF, which could help to shore up public finances and regain access to credit markets, adding “nevertheless, despite the negotiation with the IMF, investors remain nervous about the country’s debt sustainability.”
These concerns, it said, were expressed by the country’s local and foreign currency ratings downgrade from B-/B to CCC+/C, adding, “as a result, despite the news, the cedi fell further with ripple effects on inflation”.
Rating agencies, Fitch and Moody’s recently downgraded Ghana’s credit rating into deeper junk status.
They cited the recent macroeconomic deterioration, further heightening of the government’s liquidity and debt sustainability difficulties as well as increasing risk of default as reasons.
Ghana classified as highly risk debt distress country
In August 2021, the IMF classified government as a highly risk debt distress country.
The Directors therefore welcomed the fiscal adjustment envisaged in the 2021 budget, adding “they stressed that fiscal consolidation is needed to address debt sustainability and rollover risks, as Ghana continues to be classified at high risk of debt distress.”
Residents Invoke Curses On Akufo-Addo, MP, Others For Introducing Galamsey In Their Community
Some youth at Atronsu in the Bibiani Anwiaso Bekwai Municipality of the Western North region say they don’t community in their hometown as proposed by government.
They have invoked curses on President Akufo-Addo, their MP, Alfred Obeng-Boateng and any person of authority who is spearheading the agenda.
Expressing their displeasure over the development on the streets Thursday, December 1, 2022, the youth said the community mining is galamsey in disguise a.d they will not sit unconcerned for their water bodies to be polluted and lands destroyed.
They have also invoked curses on anybody that dares step foot on their land to indulge in any galamsey activity.
The youth say they want other job opportunities apart from galamsey and demonstrated their displeasure on the proposal.
One of the protestors who spoke with Onua News said “Nana Addo, you said you came for the poor but now you want to take our daily.bread from us. Our forefathers knew there was gold in our land but they never did galamsey. Chairman Wontumi, you and your children are eating and drinking in Kumasi yet you want our land to be used for galamsey.”
“Nana Addo, you told us to get ourselves involved in Planting for Food and Jobs. You gave us oil palm and cocoa seedlings and if after planting them you want them to be cleared, then what’s the sense in the investment you made.
“Our MP Alfred Obeng-Boateng, you also gave me some seedlings and the very place I planted my oil palm is where you’re asking them to come and mine. In simple terms, we don’t want any community mining, galamsey or whatever it is called,” another youth entreated.
Political elites’ attitude toward national challenges is terrible – CDD-Ghana
The Director of Advocacy and Policy Engagement at Center for Democratic Development, Ghana (CDD-Ghana), Dr Kojo Pumpuni Asante has condemned the actions of the President, some Cabinet Ministers and Members of Parliament who have abandoned the 2023 Budget debate to watch the World Cup tournament in Qatar.
This follows reports that some ministers were seen in Qatar cheering on the Black Stars during their match against South Korea.
The Members of Parliament were expected to debate the policies announced in the budget.
However, most of the Majority MPs were not present in the House when the discussions on the budget started. The Finance Minister, Ken Ofori-Atta was also represented by his two deputies.
Reacting to this in an interview aired on Joy FM’s Midday News on Thursday, Dr Kojo Pumpuni Asante described the absence of the ministers in Parliament as terrible.
According to him, the current state of the economy should urge leadership to show more concern about the welfare of the ordinary citizens and not embark on such needless travels.
“We have an army of young people that can’t find jobs and have a conveyer belt of producing more of this army of young people and the President goes to Qatar to motivate the Black Stars on the day that this budget is supposed to set and indicate our pathway to economic recovery. He shouldn’t have done that, but he did.”
“The political elites in this country have to wake up because their attitude toward national challenges is terrible and even the challenges we are facing. I feel insulted as a citizen by the way our leaders are behaving around these things,” he said.
Dr. Pumpuni Asante therefore cautioned the country’s political elite to refrain from such acts.
“It should not cross anybody’s mind, whether cabinet minister or minister to be watching football when we are trying to fashion out a strategy to get out of this hell for many people.”
You Can’t Stop Appointees From Driving V8 – Anyaa Sowutuom MP
The Member of Parliament for the Anya Sowotuom constituency, Dr. Dickson Adomako Kissi, says some government appointees might go against government’s directive on not driving V8s.
The MP says it’s untenable for him and his colleagues to drive salon cars to some parts of their constituencies.
He observed that most of the roads in the country are unmotorable, and plying such roads without V8s will be difficult for some government appointees who are Members of Parliament (MPs) to visit their constituencies.
The government in its 2023 budget statement placed “a ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023”.
Reacting to this directive on The Point of View, the legislator said it will be a herculean task for him and his colleagues to commute to their constituencies with salon cars, especially in areas with poor road networks.
“Well, I have to be very blunt here. I live in a place the roads are bad. If you stop me from using V8, I don’t know how I will get to some of my places, and I’m in Accra. I can even cite the likes of Ngleshie Amanfrom, I don’t know how Sylvester Matthew Tetteh (MP) can reach certain parts of his constituency in a salon car, it’s not possible. So that is a very difficult thing even if you are a Metropolitan Chief Executive (MCE)”.
“I mean if I need to go to Agape, if I need to go to certain parts within my constituency, if I make a move with salon car at Anyaa, there will be trouble, so I think that, that will not be very doable, and very difficult to measure,” Dr. Adomako bemoaned on The Point of View.
He wants the ban to be reviewed in order for government appointees to go about their duties without any hindrance.
The lawmaker suggested that government appointees assigned with V8s should be made to pay for their own fuel, in order to cut the government’s cost in purchasing fuel for them.
He said some bold measures need to be taken by the government to scrap fuel given to government appointees for their V8s,
“How will you know if I’m going out of Accra or not? If you see me driving V8, there are some truths I must admit, I pay for my fuel, people should be made to pay for their fuel. We better scrap it. That can be a very bold move… When the onus is on you to pay fuel for wherever you will go, you will be much careful in terms of the route you use and where and how,” he suggested on The Point of View.
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