Protests in Ghana over increasing cost of living
Hundreds of workers took to the streets in Ghana on Thursday to protest
against the increased cost of living as union leaders warned the
country's economic woes were reaching a crisis point
By Agencies
Posted Friday, July 10 2015 at 12:39
Posted Friday, July 10 2015 at 12:39
Hundreds of workers took to the streets in Ghana
on Thursday to protest against the increased cost of living as union
leaders warned the country's economic woes were reaching a crisis point.
Protesters in the industrial city of Tema, 25
kilometres (16 miles) east of Accra, demonstrated over rising prices of
goods and services which they said were not being matched by wage
increases.
A yawning public sector deficit, a falling local
currency and high inflation have heaped pressure on Ghana, which until
recent years was seen as a promising emerging economy.
In February, the government in Accra turned to the
International Monetary Fund for a $918 million loan package to
stabilise the economy and ease debt pressure.
"The economic meltdown began way back three years
ago. Gradually it's getting to a crescendo," Solomon Kotei, general
secretary of the Industrial and Commercial Union of Ghana, told AFP.
Among the protestors complaints was the removal of
subsidies on fuel and increased taxation, forcing belts to be tightened
and complaints about poor service in return.
Lack of electricity has been a growing problem,
with power cuts lasting sometimes up to a day at a time and hitting
economic activity.
"Ghanaians are paying the full brunt of these
things. However, our salaries are not actually getting commensurate with
all these things, so pressure is coming on the meagre salaries," said
Kotei.
Ghana has been seen as the rising star in West
Africa, with a strong democratic record as well as solid exports in
gold, cocoa and, since 2010, oil.
But President John Dramani Mahama has been accused
of not doing enough to sustain economic growth and the cedi slumped
against the US dollar in the last year.
Mahama has been urged to cut wasteful public
spending, including "ghost workers" in the public sector, lower deficits
and pay down debts.
On June 30, the IMF said the fund's financial and
economic programme was largely "on track" and growth was expected to
remain about 3.5 percent this year.
Increasing electricity production would be critical to improve growth in 2016, it added.
