🇬🇭Voice#05: Living in Inflated Ghana, We Have To Skip Meals
Inflation in Ghana as a 30-Year-Old Mother: Bearing the Effects of Inflation while Keeping Hopes Alive.
The following article has been written in collaboration with a 30-year-old mother living in Ghana to share her experiences and how she tries to navigate living in an inflated and unstable government.
Ghana’s economy suffers from excessive inflation, currency depreciation, rising unemployment, and other problems. Numerous demonstrations against the parliament have taken place from 2022/06 to lessen harsh economic regulations and political corruption.
The statistics are as below:
Reported Inflation: 29.8% (06/22, Trading Economics)
Government Debt (% GDP): 84.6% (2022, Bloomberg)
Sovereign Debt Vulnerability Ranking: 2nd (2022, Bloomberg)
Likewise, the Ghanian Cedi has been reported to be one of the worst performing currencies in Africa.
'Ghana Cedi be worst performing currency among top Africa currencies'-BBC
Background
I am a 30-year-old stay-at-home mum of 2 living in Accra, Ghana. My husband works an 8 to 5 job which is the only source of income for the family. I would refer to us as a middle-income family. The increasing cost of living in the country keeps complicating our daily lives.
Going Downhill
The rising inflation affects both individuals and businesses in Ghana. Ghana is an import-dependent economy as such, the worsening value of the Ghana cedis against the United States dollars (USD) has severely affected businesses, as more cedis is needed to be exchanged into dollars to import goods. The cedis depreciated from 7.7 to 8.3 against a dollar in a matter of days in July 2022.
Consequently, many businesses have downsized or even folded over the past few years.
Some friends have lost their jobs due to folding their places of work.
Effects of inflation
Fuel
We are most affected by the increasing fuel prices because this comes along with an increase in the prices of all other goods.
The hikes in fuel price are significant, as the price per liter of fuel pegged at 6.9 cedis in January 2022 has almost doubled in July 2022, selling at 11.95 cedis. I have had to limit my visits to my parents because of transport fares.
LPG; the main cooking fuel source, also keeps rising in price. Many have resorted to cheaper charcoal. Nonetheless, I am concerned about the environmental effects of charcoal and have tried my best to sustain my use of LPG.
Food
Most Ghanaian foods are made from maize or rice. Some are grown locally, and some are imported to support the growing demand due to population increase. However, the devaluation of the cedi against the USD, coupled with the increasing cost of fertilizers, has affected the prices of these items, whether locally produced or imported.
Pending now, the government has been subsidizing fertilizer prices for farmers since 2008, but the government has removed the subsidy, further exacerbating the problem.
Flour, sugar, eggs, and other essential food items have doubled or even tripled in price within this year alone.
Except for the kids, we adults mostly skip lunch. Also, due to high food prices, we sometimes have an unbalanced diet; forgoing protein or vegetables was not the case before.
Protests
Thousands of people were left stranded on December 6, 2021, as the Coalition of Commercial Transport Owners embarked on a sit-down strike to protest the hike in fuel prices.
Due to this strike, many had to walk to school or work that day. I was lucky to get an Uber to take my children to school, but I had to pay double the fare.
Also, on June 28 and 29, 2022, several Ghanaians joined a protest by a group named Arise Ghana and embarked on a 2-day protest against the high cost of living. This protest was marred in violence, leaving multiply injured.
Income
Incomes have remained stagnant though the price of everything is on the rise. Therefore, incomes have decreased in value.
Now the government has returned to IMF for support. This may come with conditionality which will not favor us as a nation.
Payment of utility bills, school fees, and all other things are done with our stagnant income. Over the past three months, my family has depended on our savings to supplement our household income. Therefore inflation has lowered our standard of life.
I have taken up online jobs to support the family, selling my skills as a freelance content writer and virtual assistant. I am still starting, and I am hopeful it will pay off. I am not giving up, and I think no one should.
How long will this last? Will we ever go back to our glory days? How long will we rely on foreign aid?
These are some questions that keep boggling my mind.
"For satire, humor, and commentary on cryptocurrencies and the state of our modern monetary system, consider reading Nani the Money! From how inflation stops people from buying Big Macs to donkeys during recessions, this newsletter is both thought-provoking and fun!
Great read - impactful coming from someone going through it !
As always- an awesome newsletter! Keep up the awesomeness!