Akufo Addo blames Ghana’s weak economy on the war

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“Borrowing is now expensive” -Akufo-Addo.

President calls on the EU to unite and end the war because African countries are suffering

Ghana’s president has expressed concern over how the Russian-Ukraine war is crippling Ghana’s weak economy. According to Nana Akufo-Addo, African countries are suffering on a scale that has never been experienced before.

He stated that the war has led to an increase in the cost of borrowing as a result of investor “tantrums”.

While speaking to some leaders in the European Union at the 2022 European Union Development Days Conference in Brussels, Belgium, Akufo-Addo called for an end to the war.

It can be recalled that just a month ago, the president stated that Africa’s food security is under threat due to the impacts of the crisis in Ukraine. This has led to the disruption of commodity imports and crop fertiliser shortages.

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“Growing concerns of fertiliser shortages in most African countries including Ghana are worrying.

“Ghana’s maize and soya production could be affected and our poultry industry could suffer greater shocks,” he said at this Annual Conference of the Academy of African Business and Development at the University of Professional Studies at Legon in Accra.

In Belgium, Akufo-Addo rallied world leaders to understand the impact the crisis has on the economies of African nations as a whole, citing a report that says 70% of African countries are at severe risk; especially with the “tantrum” of investors increasing the cost of borrowing.

“Indeed, the recent United Nations report estimates that about 70 per cent of Africa’s economies are at severe risks of the Russian war in Ukraine. In the midst of this, 18 African economies have experienced credit downgrades even when all African economies are suffering from last year’s pandemic and we in Africa are also facing the risk of the so-called tantrums as investors exist in our markets thereby exacerbating the increasing cost of borrowing.” He said.

 “At this moment, the World Bank tells us that the subsequent of the conflict, the number of poor people in Sub-Saharan Africa could rise from 413 million to 463 million this year – an increase of 50 million people.” He added.

The President is expected to leave for Kigali, Rwanda after the EU event in Belgium.

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