Ghana imported about $119m of cement from Turkey in 2020, Turkey imported about $2.49Bn of refined petroleum From Russia, that’s disrupted leading to a high cost of production and a production cut. Inflation in Turkey sits at around 70%. This means, higher prices for all products Ghana purchases from
Run this scenario and you will understand what the Geo-Political war between Russia and Ukraine is doing to all countries across the world.
Now note that all these have a direct impact on our cedi because, we need more dollars in this case to trade, which is not available and ends up making the dollar very expensive which ends up affective everything we do.
This doesn’t mean we throw our hands in the air, Nope. It simply means we need to do more to Build the fundamentals of our economy, boost industries so we produce more locally and rely less on imports, and add value to our exports so we take in more dollars.
Whiles, we hold the current temporal situation, we need to keep an eye on the major industrialization drive being pursued by Nana Addo Dankwa Akufo-Addo and Dr. Mahamudu Bawumia which will help us build
More resilience going into the future.
We cannot continue to play on the surface as we have always been doing in the past, we need to permanently fix the gaps in the structure of our economy and that’s what this government is working at. That takes time, sacrifice, and temporal discomfort.
So yes, the Russia-Ukraine war though happening far away from us, has a direct and even more direct effect on us than any other. Now run the above scenario through all countries we trade with and ask yourself, but for the Russia-Ukraine war at this time, would we be in the same situation?
Definitely, No. We were just on the rise from the pandemic, and the global economy would have improved and on the path to recovery from Covid-19 if this war disruption had not also set it.
Not an excuse, but that’s a pure fact.
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