He clarified Ghana's imports from Russia and Ukraine on the New Day show with Johnnie Hughes on TV3 on Monday, August 8.
Additionally, he added, Ghana purchases from other nations whose economies similarly depend on supplies from Russia and the Ukraine.
He gave the examples of Ghana importing items from Turkey, Brazil, America, and Vietnam. These nations have also been impacted by the conflict as a result of their dependence on the two European nations engaged in conflict for their supply of raw materials.
The former Municipal Chief Executive for Akuapem North, who was speaking during a discussion on Ghana's economic problems, remarked, "Let me tell you how the Russia-Ukraine war impacts us. We import goods from America, Vietnam, Brazil, Turkey, and other countries, in addition to Russia.
"Before they can supply us, those individuals must increase their production, which depends on Russia and Ukraine. The supply to us directly in terms of what we purchase from Russia is impacted by the conflict between Russia and Ukraine.
"This is a simple value chain supply," the speaker said, "because the supply of these fertilizers and other items to Brazil, Turkey, Vietnam, and America are affected, our import from Russia is very expensive, and our import from Vietnam, US, Turkey, and Brazil is also expensive and even not flowing because they are also affected by the Russian war."
The International Monetary Fund (IMF) staff team, led by Carlo Sdralevich, recently stated that the war is affecting Ghana. The team's visit to Ghana with the government of Ghana ended on Wednesday, July 13.
The team descended upon the nation on July 6 to evaluate the state of the economy and go over the general framework of the government's Enhanced Domestic Programme that might be backed by an IMF lending arrangement.
Mr. Sdralevich made the following remark upon the mission's conclusion: "Ghana is dealing with a severe economic and social condition amidst an increasingly demanding global climate. The COVID-19 pandemic has resulted in a dramatic worsening of the financial and debt crisis. Investors' worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing prices.
Furthermore, Ghana is experiencing a restricted amount of leeway for maneuvering as a result of the Covid-19 pandemic shock and the global economic shock brought on by the conflict in Ukraine. These unfavorable events have contributed to a slowdown in economic growth, an increase in unpaid bills, a significant depreciation of the exchange rate, and a rise in inflation.
Initial discussions on a comprehensive reform plan to reestablish macroeconomic stability and establish debt sustainability were held by the IMF team. The group made strides in determining the short-term policy priorities and the economic situation. The discussions concentrated on ensuring the credibility of the monetary policy and exchange rate regimes, protecting financial sector stability, and designing reforms to boost growth, create jobs, and strengthen governance. They also ensured that fiscal balances were improved in a sustainable manner while safeguarding the weak and vulnerable.
"IMF personnel will continue to closely monitor the economic and social situation and work with the authorities on the development of an Enhanced Domestic Program that might be supported by an IMF arrangement and with broad stakeholder participation in the coming weeks,"
"We reiterate our commitment to help Ghana through this challenging time in accordance with IMF policy.
Staff thank the government, civil society, and development partners for their helpful participation and support throughout the mission.
