Unquestionably, the Ghanaian economy is undergoing some economic turbulence in recent times. The Data from the quarters of the Ghana Statistical Service indicate that, the inflationary rate for the month of September 2022 stands at 37.2% leading to hikes in prices of goods and services in this country. As if that was not enough, the Ghanaian currency (the cedi) has also been experiencing free fall against major trading currencies globally. Currently, 1 dollar is to be exchanged at Ghc 13.02.
This is however, as a result of global economic downturn being experienced by economies world over between the period of 2019 and 2022. Some Financial Analysts/Experts and Economists have ascribed this economic quagmire to the advent of ravaging COVID-19 and Rusia-Ukraine War. It is a common knowledge that, both Rusia and Ukraine are larger producers of fertilizer, flour, and oil. However, due to the war, the world has being in a very limited supply of those commodities thereby creating ‘unnecessary’ shortage situation. Consequentially, this has also brought about skyrocketing prices of those commodities.
Zooming into the main subject for discussion, the ordinary Ghanaian is now living in hard times. In fact, for the ordinary Ghanaian to be able to feed himself or herself and the family three times a day is extremely difficult. This is owed to the fact that, Ghana’s economic situation is highly unbearable or hellish. Quickly, I would want us to critically diagnose the current economic situation in perspctive.
General prices of Goods and Services (Food Items), a visit to a Ghanaian market (New Tafo) revealed to me that, a price of 3 tubbers of yam (Pona) has increased from Ghc50.00 to Ghc60.00 , a cup of rice from Ghc10.00 to Ghc15.00, a cup of sugar has increased from Ghc5.00 to Ghc10.00, a loaf of bread (butter bread) from Ghc5.00 to Ghc8.00, a bag of rice (5kg) from Ghc60.00 to Ghc70.00, a bottle of Palm Oil from Ghc30.00 to Ghc40.00, a bunch of plantain ( Apem) has increased from Ghc40 to Ghc60.00, a gallon (big one) of cooking oil has moved upward from Ghc 1,000.00 to Ghc1,200.00 and several other food items have suffered the same fate on the Ghanaian market now.
Availability of Food Items on the Ghanaian market, it can strongly be attested that, on the Ghanaian market, food items such as plantain, cassava, yam, potatoes, cocoyam, rice,and maize and also vegetables such as garden eggs, okro, pepper, tomatoes, and kontomire are in abundance and are within the reach of the ordinary Ghanaian. In fact, the reality of the matter is that, a simple elimentary economics will teach us that, the prices of goods and services become exorbitant when they are scarce on the market (scarcity) the reverse of this is true.
Now, the multi dollar question worth asking is, why are the prices of these food items and vegetables so skyrocketed dispite being abundant on the market?
The argument of the insensitivity of the Ghanaian traders proved. Clearly, the question or argument of wheather or not the Ghanaian traders are insensitive is proved by the simple economic price theory (Demand and Supply) raised and well explained above. In furtherance to that, what economic sense does it make for the Ghanaian traders to be increasing prices of goods and services which are locally grown or produced in Ghana here? In fact, how could prices of locally produced food items be hiked without recourse to any externalities?
Conclusion
Based on the brief analysis done above, I would like to conclude my article by reiterating the fact that, inasmuch as the Ghanaian traders are proved to be insensitive, the economic policy of the government of the day is also to blame partly. However, the general economic hardship in the country also compels the Ghanaian traders to price their goods and service on the higher side thereby making cost of living of the ordinary Ghanaian citizen exorbitantly high.
Justice Reuben Adusei
Email: reubenjusticeadusei@gmail.com