IMANI Africa Boss Cautions Against Jeopardizing Economic Progress with Fresh Taxes and Pre-Election Expenditures

Franklin Cudjoe, the esteemed Founder of IMANI Africa, points out the current economic resurgence, highlighting the gradual decline in prices of locally sourced rice. In a recent Facebook update on December 23, he highlighted a significant drop in food inflation, reducing from 55% in July to 32% by November—a remarkable 23% decline.

Cudjoe shared, “In a testament to the efficacy of targeting food inflation, we’ve seen a noteworthy decrease in general inflation. Notably, maize prices have dropped from GHS350.00 to GHS150.00 this year. It seems our new Agriculture Minister has been diligent and deserves commendation. However, we must tread carefully to ensure the gains made aren’t jeopardized by impending new taxes and campaign-related spending.”

The Ghana Statistical Service (GSS) reported a November 2023 inflation rate of 26.4%, a reduction from October’s 35.2%, largely attributed to food inflation. Food inflation decreased by 12.6%, while non-food inflation saw a reduction to 21.7%.

Certain sectors, including Alcoholic Beverages, Tobacco and Narcotics (39.0%); Personal Care, Social Protection, and Miscellaneous Goods and Services (35.4%); and Food and Non-Alcoholic Beverages (32.2%), surpassed the national average in inflation rates.

In light of these statistics, President Nana Addo Dankwa Akufo-Addo acknowledged the efficacy of measures implemented to combat economic challenges, specifically the collaboration between the Bank of Ghana (BoG) and the International Monetary Fund (IMF). He stated, “We’re witnessing a commendable containment of inflation, and the alliance between the BoG and IMF is evidently bearing fruit. Additionally, the BoG’s proactive corporate governance strategies are reinforcing our banking sector.”

Commenting further, Bank of Ghana’s Governor, Dr. Ernest Addison, emphasized the central bank’s vindication due to the notable decline in inflation rates. He credited the collaborative efforts with the Ministry of Finance for formulating policies that ensure economic stability. Dr. Addison remarked, “Our strategic policies, supported by the IMF’s PC-PEG programme, are manifesting positive outcomes. The recent inflation figures underscore our resilience, proving that the challenges of 2022 were transient.”