Ghana's economy will be in ‘big trouble’ if coronavirus isn’t curbed soon – Majority Leader

The Majority Leader in parliament, Osei Kyei-Mensah-Bonsu says Ghana’s economy will need close to two years to bounce back if the Coronavirus pandemic is not eradicated soon.

He says the various interventions government is undertaking to ease the financial burdens of Ghanaians are already taking a toll on the economy and it will get worse if

Read full articlethe pandemic persists beyond four months.

Among interventions government is making to lessen the hardships on citizens, the water bills of all Ghanaians for April, May and June is being absorbed.

But some groups and individuals who believe this is not enough have made calls for a reduction in electricity tariffs as well.

The Minister for Parliamentary Affairs, in an interview with Citi News, however, indicated that the actions taken are already having a toll on the country.

“The President has since last week been talking about this, that he is considering whether or not the nation will have money. This matter has come before Cabinet. Cabinet is discussing it and Cabinet will make a decision. Of course, you have to look at the inflows. Don’t forget that revenues have cascaded downwards, petroleum revenue, tax revenue too, and now there is a slowdown.”

He added that “God forbid, if this thing should continue for the next three to four months, the nation will be in big big trouble. Even with this, if we’re really going bounce back, [with] the repercussions on the economy, it will take us about two years to recover.”



In a separate interview with Eyewitness News, the Majority Leader stated that even though government is considering the calls for a reduction in electricity tariffs, it can only be done if there is enough funds to cater for it.

“It depends on the size of the wallet of the country and what could be practically achieved by government within this span of time. Water charges are going to be borne for three months. We want to know what government is going to do in respect of this. Don’t forget that for now, we are talking about Accra, Tema and Kumasi. If this thing should happen in Tamale and Wa, given the statistics that are coming out, government will necessarily have to extend the assistance to the citizens of Tamale and Wa. That thought should perish. But if it should happen, what is being done for Accra and Kumasi will have to be extended to them as well and we should look at the purse of the country in all this,” Osei Keyi-Mensah Bonsu stated.

His submission supports that of the Institute of Energy Security, which said on Wednesday that the availability of enough funds to cushion revenue shortfall is the only way government can reduce electricity tariffs.