Ghana’s economic Woes not cuased by Russia-Ukraine war and COVID-19- Dr Emmanuel Opoku

Dr. Emmanuel Opoku, a prominent economist, has firmly stated that it is inaccurate to attribute Ghana’s economic struggles solely to the COVID-19 pandemic and the ongoing Russia-Ukraine conflict. In a recent discussion on the BlueWaves Breakfast Show, he referenced a critical report from the World Bank titled “Transforming Ghana in a Generation.” This report counters the narrative that the economic crisis Ghana faced in 2022 was predominantly due to external shocks. The World Bank asserts that, while these global events may have heightened existing issues, they merely revealed the deep-rooted structural vulnerabilities and precarious macroeconomic conditions that have long plagued the nation.

Historically, numerous past government officials have pointed fingers at these twin global crises as the main catalysts behind the alarming depreciation of the Ghanaian cedi, rampant inflation, significant fiscal deficits, and the overall debt distress that escalated during the tumultuous period of 2022. However, the World Bank’s assessment emphasizes that these economic challenges were already in motion prior to the onset of the pandemic and the geopolitical turmoil in Eastern Europe.

In his commentary, Dr. Opoku lamented that the financial distress facing Ghana cannot be solely blamed on external factors. He highlighted that if the nation’s leadership had adequately positioned and managed the economy, the country might not have found itself in such a dire state. Furthermore, he critiqued the owners of the banks that collapsed, pointing to issues of mismanagement and insufficient regulatory oversight as significant contributors to the financial crisis.

Dr. Opoku urged the government to take a more proactive approach—not only in reissuing banking licenses to these institutions but also in diligently monitoring their operations to prevent such failures in the future. His insights call for a deeper understanding of the underlying economic vulnerabilities that Ghana faces, suggesting a need for comprehensive reforms and strategic management to foster stability and growth.