Adnan Adams Mohammed
Ghanaian economy has started suffering from the governance crisis in Niger as onion prices are witnessing more than doubling of increases days after the coup d’etat and ECOWAS subsequent sanctions.
The commodity mostly imported from Niger is witnessing prices increase, which translates into about 120 percent. This is obviously going to impact negatively on food inflation of August and subsequent months if the crisis lingers on for long.
Ghana heavily depends on Niger and Burkina Faso for onions and tomatoes. Prices sampling in Kumasi in the Ashanti region, a large bag of onions, previously priced at GH¢600, has now skyrocketed to GH¢1,500. Similarly, the smaller bag, once sold for GH¢200, is now being offered at GH¢500. The situation is no different when it comes to smaller quantities: a full rubber of onions, previously trading at GH¢50, has surged to GH¢150, while half of a rubber has seen its price escalate from GH¢30 to GH¢100. Traders blame supply shortage of the food commodity for the astronomical price increases.
“This spike in prices has been triggered by a severe shortage caused by the recent military coup in Niger, which has led to the closure of borders. As a consequence, substantial quantities of onions are currently stranded at the border of Niger”, a trader at Kumasi market said.
Already, Ghana is recording surged inflation for the third consecutive month, reaching a new high of 43.1% in July, up from the previous mark of 42.5% as announced last week by government Statistician, Prof. Samuel Kobina Annim.
Food prices experienced a significant rise, hitting 55.0%, while non-food items saw inflation at 33.8%.
However, Professor Annim, emphasised the necessity of combining monetary assistance with interventions in the real sector to effectively address this inflationary trend.
According to a Food Security Report by the World Bank, the country’s Nominal Food Inflation (year-on-year) of 54% placed the nation at the 8th position.
It Real Food Inflation (year-on-year) of 12%, however, placed it at the 9th position.
For the Nominal Food Inflation category, Venezuela placed first with a year-on-year inflation of 414%. It was followed by Lebanon (280%), Zimbabwe (256%), Argentina (117th), Suriname (71%), Egypt (66%), Sierra Leone (58%) in the 2nd, 3rd, 4th, 5th, 6th and 7th positions respectively.
With regard to Real Food Inflation, Zimbabwe (80%), Egypt (30%), Lebanon (26%), Turkey (16%), Rwanda (15%), Burundi (14%), Lao (14%), Sierra Leone (13%) placed 1st, 2nd, 3rd, 4th, 5th, 6th, 7th and 8th respectively with the highest food inflation.
The report said its latest information between February 2023 and May 2023 for which food price inflation data are available show high inflation in many low-and middle-income countries, with inflation higher than 5% in 63.2% of low-income countries, 79.5% of lower-middle-income countries, and 67.0% of upper-middle-income countries and many experiencing double-digit inflation.
Recognizsng the urgency of the situation, traders who spoke about the situation, urgently appealed for intervention to alleviate the shortage.
Meanwhile, many anticipate worst situation as ECOWAS, under the leadership of Nigerian President Bola Ahmed Tinubu, has ordered the immediate deployment of the ECOWAS Standby Force to restore constitutional order and stability to Niger, which has been marred by recent events of a coup.
The urgency of the Extraordinary Summit arose due to the unlawful detention of President Mohamed Bazoum by members of the Presidential Guard within Niger.
The ECOWAS deadline given to the coup plotters to reinstate constitutional democracy had lapsed, prompting the leaders to take robust measures to address the crisis.
ECOWAS has announced a range of measures to facilitate the swift restoration of constitutional governance. These include the enforcement of border closures, stringent travel bans, and asset freezes on any individuals or groups obstructing the peaceful efforts aimed at reestablishing constitutional order in Niger. This multifaceted approach underscores the organization’s commitment to resolving the crisis and ensuring a return to democratic norms.
The West African bloc has also called upon the African Union to endorse the collective decisions made by ECOWAS regarding the situation in Niger. This collaborative effort seeks to amplify the regional response and garner broader international support for the restoration of democratic governance.
In a bid to uphold the principles of democracy and the rule of law, ECOWAS had set a deadline for the Nigerien junta to relinquish control and restore the democratically-elected government. Regrettably, this ultimatum was ignored by the coup leaders, prompting the regional body to take stronger action.
In response to the looming intervention, the leaders of the coup have issued a warning, stating their intent to defend themselves against any external intervention. This threat underscores the complexities and challenges that ECOWAS may face in executing its mission to restore constitutional order in Niger.
