In a sharp critique of the Ghanaian government’s handling of the country’s economic crisis, Dr. Nii Moi Thompson, former Director-General of the National Development Planning Commission, has called out officials for consistently blaming the country’s economic woes on external factors such as COVID-19 and the Russia-Ukraine war.

Dr Thompson, in his critique, argued that these excuses are unfounded, pointing to data that suggests Ghana’s economic troubles are primarily due to domestic mismanagement and corruption rather than global crises.

Dr Thompson presented a comparison of COVID-19 death tolls and inflation rates across various countries to challenge the government’s narrative.

He noted that while Ghana experienced 1,462 COVID-19 deaths, other countries like South Africa (102,595 deaths) and Kenya (5,689 deaths) had much higher death tolls but managed to maintain significantly lower inflation rates.

He stated that as of July 2024, South Africa’s inflation stood at 5.1%, Kenya’s at 4.3%, China’s at 0.5%, and Ukraine and Russia at 5.4% and 9.1%, respectively, while, Ghana’s inflation was staggering 21%.

“These statistics clearly show that Ghana’s economic challenges cannot simply be blamed on the pandemic or international conflicts. Other countries with far greater impacts from COVID-19 have managed to keep their economies stable.”
Dr. Nii Moi Thompson, former Director General of the National Development Planning Commission

Misuse of Funds: Where Did the Money Go?

Furthermore, Dr Nii Moi Thompson highlighted inconsistencies in the government’s financial management during the pandemic.

He pointed out that Ghana mobilized a total of GH¢27 billion, which included $2 billion from the International Monetary Fund (IMF) in 2020 and 2021, however, only 40% of this amount was reportedly spent on COVID-19-related expenses.

“What happened to the rest of the money, why are Ghanaians paying a Covid levy, and why is Ghana back at the IMF for an additional $3 billion?”.
Dr. Nii Moi Thompson, former Director General of the National Development Planning Commission

The Eurobond Debt: A Tale of Mismanagement

Dr Thompson’s critique extended to the government’s handling of Ghana’s Eurobond debt. According to him, of the $15.5 billion borrowed by Ghana through Eurobonds since 2007, a whopping $11 billion was borrowed between 2018 and 2021 by the current New Patriotic Party administration.

The government claimed these funds were directed towards infrastructure development, but Dr Thompson pointed out that official budgets contradict this claim.

“Infrastructure spending fell short of budgets by an average of 10% per year between 2017 and 2020 (it exceeded budget by about 3% yearly between 2013 and 2016)”.
Dr. Nii Moi Thompson, former Director General of the National Development Planning Commission

Dr. Thompson emphasized the disconnect between government claims and the reality faced by Ghanaians, asserting that across the country, communities are protesting poor infrastructure, from deteriorating roads to crumbling schools and hospitals.

He argued that many projects have been abandoned because contractors have not been paid, further debunking the narrative that borrowed funds were effectively used for development.

“In short, Covid put no extra pressure on our public finances. We spent less than half of the money mobilised for it. In fact, according to the government, we even exceeded our tax revenue target in 2020”.
Dr. Nii Moi Thompson, former Director General of the National Development Planning Commission

The renowned Economist and former senior economist at the New York State Bureau of Fiscal and Economic Analysis in New York City concluded his remarks by asserting that the root causes of Ghana’s economic crisis are “mismanagement and corruption; Nothing else”.

Dr. Thompson’s remarks call for greater transparency and accountability from the government regarding its economic management.

His analysis suggests that blaming external factors such as COVID-19 and the Russia-Ukraine war is a diversion from the real issues plaguing the Ghanaian economy.