Finance Minister, Ken Ofori-Atta, has given heads up on the imminent collapse of Ghana’s economy in the coming days.
According to the minister, if an agreement is not reached with the International Monetary Fund (IMF) to secure the $3bn credit facility, the economy will be derailed and eventually collapse.
Addressing pensioner bondholders who were displeased over their inclusion in the government’s Domestic Debt Exchange Programme (DDEP) on February 6, 2023, the minister said “We need to be mindful that we really need to be successful in going to the fund by this March to avoid what we all experienced last year which we all don’t want to experience again.”
Here is what will happen if Ghana’s economy collapses:
1. Banks would close, which means Ghanaians would likely lose access to credit.
2. Demand would outstrip the supply of food, gas, and other necessities.
3. If the collapse affects local governments and utilities, then water and electricity might no longer be available.
4. Interest rates would skyrocket. Investors would rush to other currencies, such as the dollar, yuan, euro, or even gold.
5. The situation would create not just inflation, but hyperinflation, as the cedi would lose value to other currencies.
6. There would be extreme poverty and hunger leading to deaths.
7. Social vices and crime rates will spike.
8. All of these and many others will create chaos and lawlessness leading to the eventual failure of government.
