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Bawumia: Ghana directly affected by Russia-Ukraine war

Dr Mahamudu Bawumia said the increase in commodity prices has been exacerbated by the Russia-Ukraine conflict

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  • "Here in Ghana, some 60% of our total imports of iron ore and steel are from Ukraine; Russia accounts for some 30% of Ghana’s imported grains, 50% flour, and 39% of fertilizer. So, we are directly affected by the Russian-Ukraine war. Unfortunately, we do not know when it would be over."

Vice President, Dr Mahamudu Bawumia has said that the war ensuing between Russia and Ukraine has a direct effect on Ghana’s economy and all other sectors.

Speaking on the state of the economy at the national TESCON conference in Kasoa on Thursday (7 April), Dr Bawumia said the increase in commodity prices has been exacerbated by the Russia-Ukraine conflict.

According to him, countries and economies throughout the world are experiencing severe challenges following the COVID-19 pandemic and the more recent Russia-Ukraine war. Adding that “the pandemic, which started in early 2020, resulted in the greatest economic depression in the world since the 1930s with most countries recording negative GDP growth.”

He further explained that supply chain disruptions and the rising price of oil, which went up to a high of over $130 this year, have resulted in major increases in the prices of fuel across the globe with petrol prices doubling in many countries.

“The highest petroleum prices can be found in Hong Kong, the Netherlands, Zimbabwe, Germany, Israel and the United Kingdom.”

“Furthermore, the global average cost of shipping a container has increased from $1446 in December 2019 to US$9, 789 in February 2022 (an increase of 576%). This has dramatically increased the cost of shipping goods and therefore their prices on the market,” he added.

Rising food prices

Dr Bawumia said food prices have also not been left out.

According to him, “the FAO Global Food Price Index increased from 95.1 at the end of 2019 to 140.7 12 in February 2022 (an increase of 48%). The increase in commodity prices has been exacerbated by the Russia-Ukraine conflict. Russia and Ukraine together account for 30% of global wheat exports; the longer the conflict ensues, the greater will be the disruption to global food supplies.”

The conflict is also likely to slow down global growth. According to the AfDB, the price of wheat has shot up by 62% since the war began, the price of fertilizer is up by 300%, and the price of maize is up by 36%.

The Vice President added that “here in Ghana, some 60% of our total imports of iron ore and steel are from Ukraine; Russia accounts for some 30% of Ghana’s imported grains, 50% flour, and 39% of fertilizer. So, we are directly affected by the Russian-Ukraine war. Unfortunately, we do not know when it would be over.”

Nicholas Brown

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Nicholas Brown

I am a multi-media journo with Asaase Radio. I tell stories that shape the difficulties of life. Let's talk about anything acting, stage direction and making an impact.

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