A Ghanaian economist has told the BBC’s Newsday radio programme that “you need to go back about 20 years to understand the root causes” of Ghana’s current economic problems.
The West African nation is facing the highest rate of inflation in more than 20 years, making the cost of living unbearable 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” because it got “significant debt relief” and discovered “vast quantities of crude oil which it was believed would transform the economy, economist Theo Acheampong said.
In the 13 to 14 years up to 2021 it had borrowed in excess of $15.5bn (£12.5bn) in Eurobonds alone, Mr Acheampong said.
His comments come as aid groups are calling on international creditors to cancel a large portion of Ghana’s debts as it struggles to contend with an economic crisis.
Mr Acheampong says the move would “make a difference in bringing down the debt profile but also giving the country a bit of fiscal space”.
