Ghana to cut civil servants salaries by 30% to fight financial crisis

The West African country is facing rampant inflation, a depreciating local currency and a heavy debt burden that has dented investor confidence and could build up into a debt crisis. Photo: Carla Gottgens/Bloomberg

Accra – Ghana’s government would pump $2 billion (R29.5bn) into the economy to rescue the cedi currency, the presidency wrote on Twitter on Wednesday, adding that it would cut political appointees’ salaries by up to 30% as part of measures to ease its financial problems.

The West African country is facing rampant inflation, a depreciating local currency and a heavy debt burden that has dented investor confidence and could build up into a debt crisis. The cedi has weakened by about 20% against the dollar this year, exacerbating its problems.

The announcement from President Nana Akufo-Addo follows the central bank’s decision on Monday to hike its main lending rate by 250 basis points to 17%, the largest increase in Ghana’s history.

Ghana was long seen as a rising star among Africa’s emerging market economies, but underwhelming oil revenues and supply chain disruptions amid the Covid-19 pandemic have dampened expectations.

The Bank of Ghana raised its main lending rate by 250 basis points to 17%, signalling an aggressive stance against the rocketing price of goods from flour to sugar to fuel, and against a depreciating local currency that has dented investor confidence.

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About Cholo Brooks 17502 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.

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