A Ghanaian economist told the BBC’s Newsday radio program that “you have to go back about 20 years to understand the causes” of Ghana’s current economic problems.
The West African nation is facing its highest inflation rate in more than 20 years, making the cost of living unaffordable for many, with some people even telling the BBC they cannot afford basic commodities like cooking oil.
In the early 2000s, the country went on a “borrowing binge” as it secured “significant debt relief” and discovered “huge amounts of crude oil that it believed would transform the economy,” said economist Theo Acheampong.
In the 13 to 14 years to 2021, they have borrowed more than $15.5bn (£12.5bn) in Eurobonds alone, Mr Acheampong said.
His comments came as aid groups called on international creditors to cancel a large portion of Ghana’s debt as it struggles to cope with the economic crisis.
Mr Acheampong said the move would “make a difference in reducing the debt profile but also provide fiscal space for the country”.
Source: BBC
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