Ghana, known for its vibrant culture, warm people, and growing economy, is currently grappling with the challenge of rising costs of living. In recent years, Ghanaians have experienced an increase in the prices of essential goods and services, leaving many individuals and families struggling to make ends meet.
The cost of living in Ghana is a pressing issue that has been exacerbated by a combination of external shocks, economic mismanagement, and corruption.
Dr Hassan Ayariga, Founder and Leader of the All-People’s Congress (APC), has expressed concern over the high cost of living in the country. He added that the reality at most markets does not support the government’s claim that prices of food items were on a decline.
“There is still widespread despair and disenchantment among our people. Millions of Ghanaians are going through unbearable hardship and excruciating pain. Our economy is in its worst shape in decades Ghana’s economy is bankrupt or insolvent.”
Dr Hassan Ayariga
The cost-of-living crisis in Ghana is not just felt by individuals but also by businesses. For instance, Doris Oduro, a single mother of two, is considering closing her store in Accra due to the high cost of living. The economic crisis has taken a huge toll on her business, as she struggles to restock her shop with imported items.
Kwame Appiah, a civil servant, expressed his concerns, saying, “As a father of three, I find it increasingly challenging to provide for my family’s basic needs. Prices of food, rent, and utilities have skyrocketed, while my salary remains stagnant. It feels like we are running on a treadmill, working hard but making no progress.”
The depreciation of the Ghanaian cedi against major foreign currencies has increased the cost of imported goods. The country, which relies heavily on imported goods, is now facing challenges in affording the rise in freight costs.
Abena, a small business owner, highlighted the impact of rising costs on her business. “I run a clothing store, and with the increasing prices of raw materials and utilities, my profit margins have significantly shrunk. I am constantly adapting my pricing strategy to remain competitive, but it’s becoming increasingly difficult to sustain my business.”
The ongoing rise in transportation costs in Ghana is also a major issue for the people of Ghana. This makes it harder for many Ghanaians to afford transport to work and make a living for their family.
As a result of the inflation, many people across Ghana are losing their jobs and will no longer be able to afford food and every day goods for their families. Without food, families will soon face poverty. With poverty brings starvation and death.
Future Outlook
Former President John Dramani Mahama has outlined the NDC’s commitment to implementing progressive policies aimed at restoring the economy and improving the lives of Ghanaians, stressing the party’s flagship “24-hour economy” policy as a transformative initiative to boost productivity, create jobs, and address key socio-economic challenges facing the country.
Also, the flagbearer of the New Patriotic Party (NPP), Ghana’s Vice President, Dr. Mahamudu Bawumia, unveiled a four-pronged approach to address the nation’s rising cost of living if elected as President.
To make public transportation more affordable, Dr. Bawumia proposed transitioning to electric vehicles (EVs). He claims this could reduce costs by 30-40% due to lower fuel and maintenance requirements for EVs, ultimately leading to stable and predictable fares.
“My vision is to build an inclusive, food self-sufficient, data-driven, and systems-based nation that will fully participate in the global digital revolution to solve our problems and also usher in a golden age of benefits from our natural resources”.
Dr. Mahamudu Bawumia
The rising costs of living in Ghana have emerged as a pressing concern for individuals and families across the country. Factors such as inflation, currency depreciation, and the impact of COVID-19 have collectively contributed to this challenging situation.
Policymakers must continue investing in sustainable solutions, fostering economic growth, and creating an enabling environment for businesses to thrive. By addressing the root causes of rising costs, Ghana can pave the way for a more affordable and prosperous future for its citizens.
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