What does it take for an African country to pick up the pieces and remarkably stand up? Here are the effects of Covid 19 on financial security.
Being politically, economically, ethnically, and demographically diverse country, Ghana has maintained an ethno – regional balance in representation due to the Ghanaian government. Crisis and suffering for more than three decades, of suffering and pain, a famine that resulted from death, Ghana appeared to be on its feet again. Forecasted to be the fastest economy in 2019 and established a routing number as an indicator, Ghana becomes a constant to the Federal Reserve Banks. Routing number as an economic indicator used for fund transfers, direct deposits, bill payments, and other automated transfers (ACH Automated Clearing House)
Ghana’s Economic Place
Oil and crude production make the country at the top of the GDP growth with estimates of 8.8% this year, doubling the step towards emerging economies as a whole. Ghana, aside from oil and crude production, was also known as the “Gold Coast” for the reason that gold and other precious stone products such as diamonds, manganese ore, bauxite are also bountiful. After South Africa, Ghana is also the second-largest cocoa producer exporting cocoa to neighboring countries and takes the lead. Cadbury chocolate of Australia gets raw cocoa for its product, a typical by-product of cocoas from Ghana, where harvesting is done twice a year.
Financial Security in Ghana’s Economy
Talking about the economy and its freedom in the market, Ghana scored 57.4, and that makes the country the 104th freest, based on the 2020 index. A noticeable annual growth rate of 5% exhibited in the 1980s and a higher growth rate in the 2000s. Ghana has shown relatively stable growth with an average growth rate of 5% since the 1980s, and notably higher growth rates in the 2000s.In 2005-2006 the proportion of the population living below the poverty line fell to 28.5 %, for a country relying heavily on commodities with insufficient linkages to other sectors. With this line of thinking the world that includes the Ghanian community very well expects the country to continuously climb to the higher level of economic and financial stability
Covid 19 VS. Financial Security
The spread of Coronavirus disease 2019( COVID 19) identified in 2019 has spread a pandemic among nations, and Ghana is not an exemption. The virus treated a causal sequence of havoc across all aspects of the economy, including the upward trend of the economy that Ghana is experiencing lately. The decision to close all ports leading to and from China dramatically changed everything. The impact of the pandemic started as South Africa reported its first case of Covid 19. On the economic side of the market, Covid 19 slowly crawled on the economy due to the slowdown of the export industry, which forms a bloodline of Ghana’s economy and financial stability.
Since China had Covid 19, several measures made to contain this contagious disease, and ports closure is one big leap towards fighting it. But contrary to this move, made Ghana vulnerable to economic downfall, China’s port closure resulted in a decline in the imports of raw materials and commodities coming from Ghana. Africa suddenly felt geopolitical and economic instability when China declined manufactured goods and industrial components coming from the country, and uncertainty of what lies ahead slowly crept in.
Facing the Uncertainty of the Unseen
As per Ghana’s statistics, there are already 19 Covid 21 affected citizens as of this writing, and the spread has also drastically disrupted Africans lives, livelihoods, businesses, and communities. Global companies should take note of stakeholders’ interests aside from the fact that labor and workforce are of equal importance as to the economy and financial stability. It must go together to reduce the effect on public health and further interfere with the lives and prosperity of all nations. Uncertainty of the spread of Covid 19 is on its peak, and its impact is dangerous, especially in Africa, with its vulnerability to China. An outbreak of the virus could drown the weak health care system of the regions
Onwards to Stand and Fight
Economic instability looms over with the present state of Africa, with the latest trends of instances and incidents. For the economy to catch up, several measures were implemented to lessen the effects of the “ 2019 historical pandemic”. Banking systems decide to cut interest rates and inject liquidity into the banking system.
Covid 19 will surely hamper the growth of Africa’s economy, specifically Ghana and the result may be uncertainty towards investment opportunities
The virus is contagious, plainly it will be written to humanity’s history, but what is needed is a more infectious solution. A Collective effort coordinated with actions of the business sector with the help and support of the government surely will parallel this history. The global multi-stakeholder collaboration drastically will manage and limit the economic effects of this crisis. After all, it is only a virus.
Maureen is a freelance writer who writes about different topics such as computer software, mobile application, financial information, among other things. She has been engaged in writing how-to guides and informative articles directed for various kinds of readers. During her spare time, she loves to read fiction books and watch movies or TV series.