Ghana: Prayers for a more prosperous year ahead

Ghana is considered to be one of the more stable and peaceful countries in West Africa since its transition to multi-party democracy in 1992. Gold, cocoa and more recently offshore oil form the cornerstone of the Ghanian economy.

In the years preceding the COVID-19 pandemic and the Russia-Ukraine war, Ghana enjoyed an average annual economic growth rate approaching 7%, thus making it one of the fastest-growing economies in the West African sub–region and on the continent. Despite the economic slowdown brought on by the pandemic, Ghana still managed to sustain a growth rate of 0.5% in 2020, 5.4% in 2021 and 3.2% as at end of 2022. Lesser growth of 1.5% is projected this year. 

However, amid reports that the government is effectively broke, the country is having trouble servicing its debts, which totalled GH467.4 billion / 38 billion US Dollars as of September 2022. To support the economic budget for year 2023, a $3 billion Extended Credit Facility scheme from the IMF was secured.  

The rising inflation (from 7% in year 2019 to 31% in year 2022), high interest rate (from 16% in year 2019 to 27% in year 2022), declining GDP per capita income (from $2208 in 2019 to around $2105 in 2022) and persistent currency depreciation, culminated into protests and demonstrations by Ghanaians in the streets of the capital (Accra). The protestors demanded transparency, accountability as well as improvement of infrastructure from the government. 

Citizen and consumer sentiment concerning the country’s economic situation from studies conducted by Ipsos in Ghana have been on the negative end.  

With elections coming up in December 2024, the current party in power, NPP, is determined to maintain their reign after eight years with the slogan “breaking the 8’’. However, the main opposition party, NDC, is aiming at re-occupying the presidential seat with the former president John Dramani Mahama as their flagbearer in the upcoming elections.  

Ghanaian citizens see the economic situation in the country over the past year as having worsened. Many say that financially, they are less well–off than they were a year ago. In order to survive, many have taken on side jobs or are looking for salary increases at their places of employment or even searching for better paying jobs.

The elections next year give a lot of people hope that some form of change will be ushered in, resulting in more prosperous times economically. As a religious nation, a lot of people also believe that continued prayers from the citizens and from religious leaders will help bring about better living conditions in the country sooner rather than later. 

Philip Okullo

Country Manager, Ipsos in Ghana