Ghana’s 2024 economic situation is similar to every other year, where the prices of goods and services continue to rise.
This is a common global economic phenomenon that every country experiences. During this annual economic transition, prices of everything increase, and currencies experience fluctuations. Governments often cannot stop this but can manage it. As years advance rather than reverse, there is a shift in the standard of living for local people, making it either better (positive) or worse (negative). For example, the prices of products and services in all countries cannot be the same in 2021 as they are in 2024.
If Ghana’s economy is experiencing a drastic decline in businesses, especially foreign investments, a poor standard of living, a sharp increase in the prices of goods and services, and other issues that are not aligned with the global rate of economic transition but are instead worsening, immediate attention must be taken to resolve these issues before it’s too late for Ghana’s economy.
Several negative issues are happening in the Ghanaian economy, such as the Ghana Cedi dropping against the US Dollar and prices of goods and services rising rapidly, causing most people in Ghana to experience a poor standard of living.
Some causative factors I can suggest include:
1. Most Private Business Transactions, Including Some Public Transactional Charges, Are Done in USD Instead of Ghana Cedis Within the Country.
2. Ghana Does Not Have Appropriate and Proper Tax or VAT Refund Systems for Those Who Pay Taxes. Even if not the people who live and work in Ghana, foreign and local businesses must enjoy tax refund systems. Paying VAT or tax is akin to extending a loan to the tax authorities, which they reimburse with interest at the conclusion of each VAT or tax yearly cycle. This practice is a crucial economic tactic that can bolster Ghana’s economy. The absence of a VAT refund system is a significant factor in the shutdown of many international businesses, as it hinders their ability to enjoy certain investment benefits to encourage them to reinvest in the country, particularly when their revenue falls short of projections.
3. The Current Poor Standard of Living in Ghana Is the Result of Several Minor Issues Ignored by Every Successive Government. Minor issues such as rent for accommodation not being charged monthly to ease tenants’ financial pressure, hence they complain of hardship. There is no regulatory increase in salaries and wages compared to the current rising costs of goods and services. The importation of locally produced Ghanaian crops from other countries is another issue. Everyone living in Ghana is too free to do anything because of democracy, so regulations are not tactically implemented to encourage the people living in Ghana to be law-abiding citizens.
Here are some inquiries that frequently cross my mind:
– How many Ghanaians have at least 100 Ghana Cedis as closing available balances in their bank accounts?
– How many foreign investors in Ghana are willing to transfer huge sums of money to their countries through legal financial institutions, especially banks, due to unacceptable exchange rates?
– How many financial institutions are able to issue credit facilities to Ghanaians for survival?
Had the successive governments of Ghana, from the time of independence to the present, directed greater attention to these potential factors, along with others not specified, the people living in Ghana might not express as much dissatisfaction amidst the ongoing global economic shift. Even with the Ghana Cedi’s poor performance, the people would have a stronger capacity to endure and comprehend the economic difficulties faced by the nation.
Richard Hagan Quotes
“To better a country’s standard of living, the laws and regulations must strategically be implemented to encourage the people to respect them, and then they will automatically obey. But when people are forcibly enforced to obey the laws and regulations, they won’t respect them; hence the laws and regulations will not be obeyed respectfully.”
Richard Hagan is recognized as an entrepreneur, political figure, scholar, philanthropist, and professional advisor on global economic strategies.
