Nkonkonsa Celebrity Gossip From Africa
As reported by The New York Times, the Ghanaian government is faced with severe financial difficulties, hence failing to meet its obligations to foreign creditors by December.
President Nana Akufo-Addo’s government “had no choice but to agree to a $3 billion loan from the lender of last resort, the International Monetary Fund,” noted the paper, underpinning Ghana’s fall into dire financial straits, with government entities owing billions to contractors and facing a mounting debt crisis.
Emmanuel Cherry, the CEO of an association representing Ghanaian construction companies, disclosed that outstanding payments owed by the government to contractors had reached an astounding 15 billion cedis, equivalent to approximately $1.3 billion, without considering interest. This financial crisis has had extensive repercussions, including many contractors being forced to lay off workers, exacerbating the country’s unemployment crisis.
Additionally, the Ghanaian government is reported to owe independent power producers a substantial $1.58 billion, posing a looming threat of nationwide power shortages.
“The government is essentially bankrupt,” stated the report. “It was the 17th time Ghana has been compelled to turn to the fund since it gained independence in 1957. This latest crisis was partly prompted by the havoc of the coronavirus pandemic, Russia’s invasion of Ukraine, and higher food and fuel prices.”
