How global trade tensions are impacting Ghana’s economy

In the face of a rising global trade tension and projected global recession in 2020, emerging economies like Ghana are feeling the impact. The year 2018 was described as a year of growth for Ghana, but with the economy showing signs of disappointment, investors are closely observing the market trends. Emmanuel Zewu, Vice President for the Economic Research and Policy Analysis unit at New Era Africa, and Winston Osuchukwu, Co-founder of Trans-Sahara Incorporated, shed light on the current scenario of Ghana's economy and strategies for navigating the global challenges. Zewu highlighted the government's 'Planting for Food and Jobs' program, which has yielded positive results in reducing food inflation. However, concerns were raised about Ghana's debt to GDP ratio, which stands at 198 billion Ghanaian cedis in Q1 of 2019. The country's high debt level poses challenges, especially with a significant portion of tax revenue going towards debt interest payments. Zewu also emphasized the need to attract foreign direct investment and leverage the global financial issues to improve the external sector. He pointed out that Africa's relatively less integrated economies can minimize the impact of global trade tensions by positioning themselves strategically to benefit from the shifting capital flows. Osuchukwu echoed similar sentiments, emphasizing the importance of value addition in exports to drive industrialization across Africa. He proposed that countries should focus on processing raw materials locally to reduce costs for importing countries in a global recession, thereby increasing demand for African goods and services. Ghana and Nigeria, in particular, were urged to prioritize value-added activities and industrialization to capitalize on potential opportunities amidst global challenges. Both experts underscored the importance of strategic planning and proactive measures to steer African economies towards growth and resilience in the face of global uncertainties. As Ghana navigates economic challenges and explores avenues for growth, stakeholders will be closely monitoring policy decisions and initiatives to safeguard the country's economic interests and harness opportunities for sustainable development.