Finance Minister Ken Ofori-Atta has revealed that the lockdown was not extended because the policy had a dire impact on the informal economy.
The impact, according to Mr Ofori-Atta made it impossible to continue with the lockdown directive.
Speaking at the launch of MASLOC’s integrated ICT system, Mr Ofori-Atta said the decision to lockdown also revealed the vulnerabilities of the economy.
He said, “We are truly at a critical juncture, giving where we are with Covid and really the vulnerabilities that we have seen revealed because of the experiences that we are going through.”
Mr Ofori-Atta said “It is quite humbling because you look at 23% of our population that earns below maybe $400 a year and you look at what happened with the lockdown, it was quite clear at a point that giving that 90% of our population is informal and they go out each day to earn wages, it became increasingly impossible to continue with such a policy and therefore even as there was reason to unlock ourselves but not let down the protocols, we have to search deep on how we bring resources and help people to be able to do their work on a daily basis.”
Presenting a financial statement to Parliament on the economic impact of the Covid-19 pandemic on the economy of Ghana on March 30, the Finance Minister said there will be a significant hit on the country’s non-oil revenue due to the pandemic.
“The Covid-19 pandemic is already impacting Ghana severely. Growth is slowing down, financial conditions have tightened, and the exchange rate is under pressure. This has resulted in large government and external financing needs. The authorities have timely and proactively responded to contain the spread of the Covid-19 pandemic in Ghana and support affected households and firms.
“The IMF continues to monitor Ghana’s situation closely and stands ready to provide policy advice and further support as needed,” the IMF said in a press statement on the release of funds.
Finance Minister, Ken Ofori-Atta, said Ghana is expected to suffer a revenue shortfall of up to GH¢2.2 billion (about $377 million) as a result of the coronavirus pandemic.
According to him, this is as a result of “the anticipated decline in import volumes and values, as well as the slowdown in economic activities.”
