Inflation is hovering at a file 50.3 % in Ghana, as soon as described as Africa’s shining star by the World Financial institution.
Ghana’s authorities and commerce unions have agreed to extend all public servants’ salaries by 30 % for 2023, they mentioned in a joint assertion, because the nation struggles to scale back debt and deal with rampant inflation.
Commerce unions representing public service workers began negotiating wage rises with the federal government in November, just a few months after hardship spurred avenue protests that pushed the federal government to hunt assist from the Worldwide Financial Fund (IMF).
The 2 events on Thursday settled on a 30 % improve to base pay throughout the board, efficient from January 1, 2023.
The West African gold, oil and cocoa producer, as soon as described as Africa’s shining star by the World Financial institution, is battling its worst financial disaster in a technology, with inflation hovering at a file 50.3 %, the best in 21 years.
The native cedi dropped closely in opposition to the US greenback final yr as authorities spending cuts and central financial institution rate of interest hikes did not tame inflation, which rose to a brand new excessive of 54 % final month.
Ghana’s authorities introduced sweeping spending cuts in March, together with a reducing of ministers’ salaries, to scale back the deficit, include inflation and sluggish the cedi’s slide.
But it surely additionally elevated the price of dwelling allowance for public staff by 15 % in July, citing the impact of “international challenges” on residents.
Ghana secured a staff-level settlement with the IMF for a $3bn, three-year help bundle in December. But it surely must restructure its debt to entry the funds.
The federal government launched a home debt change programme final month and later mentioned it will default on practically all of its $28.4bn of exterior money owed.
It requested to restructure its bilateral debt beneath the G20 widespread framework platform this week.
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