COVID-19, Russia-Ukraine war affecting Ghana’s economy – IMF delegation head

Carlo Sdralevich, Leader of IMF Mission to Ghana

Carlo Sdralevich, leader of the IMF negotiation team in Ghana, has reaffirmed the government’s narrative that Ghana’s economic hardship is partly a result of the ongoing Ukraine-Russia war as well as the COVID-19 pandemic.

Sdralevich, after meeting the various stakeholders in the country concluded that Ghana’s fiscal and debt situation has severely worsened following the COVID-19 pandemic.

He admitted that Russia’s invasion of the territories of Ukraine is also hitting hard at a time when the country is still recovering from the COVID-19 pandemic shock.

Carlo Sdralevich said, “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for manoeuvre. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

Sdralevich expressed commitment “to support Ghana at this difficult time, consistent with the IMF’s policies”.

The team from the International Monetary Fund (IMF) have been in Ghana after President Nana Addo Dankwa Akufo-Addo called the Managing Director, Kristalina Georgieva, seeking an extended credit facility for the country.

The Carlo Sdralevich-led team arrived in Ghana on Tuesday, July 5 and started engagements the following day.

They met Vice President Dr Alhaji Mahamudu Bawumia, staff of the Ministry of Finance, and the sector minister, Ken Ofori-Atta.

The team also met with the Parliament’s Finance Committee, civil society organisations, and development partners, including UNICEF and the World Bank, to engage in social spending.