Show me a country that hasn’t been affected by the Covid, Russia-Ukraine conflict – Kabiru Mahama

Dr. Kabiru Mahama, an Economic Policy Analyst in the President’s Office, has stated that the Akufo–Addo government is not using the current economic crisis, as well as ongoing geopolitical tensions between Russia and Ukraine, as justifications for the country’s economic woes.

He stated on Saturday, March 26 on TV3’s Key Points that Ghana is facing the same issues as any other country in the globe as a result of the coronavirus outbreak and the Russia-Ukraine conflict.

He was speaking on the steps proposed by Finance Minister Ken Ofori Atta to address the country’s current economic issues.

Former Deputy Finance Minister Kweku George Ricketts-Hagan said on the same broadcast that Mr Ofori-initiatives Atta’s are insufficient.

“If you look at our debt and a variety of indices, you’ll see that the way our economy is constructed is part of the problem,” Mr Rickets-Hagan had remarked.

“Then there’s the other side, which has to do with how we run our businesses.” When your fundamentals are weak, you will be exposed,” the former Cape Coast South Member of Parliament warned on Saturday March 26 on Key Points with Dzifa Bampoh.

Mr Ofori-Atta announced on Thursday March 24 that with immediate effect, the government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year.

He said this will affect all new orders, especially 4-wheel drives.

“With immediate effect, Government has imposed a complete moratorium on the purchase of imported vehicles for the rest of the year. This will affect all new orders, especially 4-wheel drives. We will ensure that the overall effect is to reduce total vehicle purchases by the public sector by at least 50 percent for the period,” he said.

“Again, with immediate effect Government has imposed a moratorium on all foreign travels, except pre-approved critical/statutory travels; Government will conclude on-going measures to eliminate “ghost” workers from the Government payroll by end December 2022;

“Discretionary spending is to be further cut by an additional 10%. The Ministry of Finance is currently meeting with MDAs to review their spending plans for the rest of the three (3) quarters to achieve the discretionary expenditure cuts; ii. these times call for very efficient use of energy resources.

“In line with this, there will be a 50% cut in fuel coupon allocations for all political appointees and Heads of government institutions, including SOEs, effective 1st April 2022,” he added.

Sharing his perspectives on the issues, Dr Kabiru Mahama said “The problem with this particular country is that we take issues on the surface and we run to town with them. When we do that we are lost in the forest of issues that we are not able to take out which one is the solution to our problem. That is the problem whenever we have a discourse about the economy.

“This government did not run this particular economic to the abyss. In the last five years, between 20017 and 2019, we grew the economy on average of 7 per cent. Interest rate came down from 35 per cent to as low as 22 per cent. The Bank of Ghana reduced the policy rate consistently. We successfully implemented free SHS. So all these have to be put in context that. We know that Covid came, people say it is a rescue but I have always told people that give me your prototype of a country that was doing well in Covid then I will be humble enough to accept Ghana is taking refuge in a case that is nonexistent.

“We agree that Covid is an issue. Let us come to the Russia-Ukraine, give me a country that has not felt the brunt of the Russian-Ukrainian war. The transmission of economic mechanism is such a way that, it is just like the human body, if you have a problem with the head the whole system is going to be affected.

“We have our 2.5 per cent of our export and import from Russia and Ukraine and we think that it will not heighten the pressure. The pressure also heightened in February to March. All these discussions we are having they became heightened within this particular period so when we are talking about the economy, we should also be humble enough to say , we are discussing these issues because the problem has been heightened.”