#FixTheCountry: Ghanaians take to social media to vent building frustrations

Ghana’s Twitter has been abuzz with the hashtag #FixTheCountry. Revenue raising measures are the immediate trigger, but the movement is underpinned by wider cost of living, jobs, corruption and environmental concerns. Addressing Ghana’s macroeconomic imbalances, #FixTheCountry concerns and gaps in political strategy will be hard, necessary work for the government.

Significance – Difficult timing but action borne out of need.

Ghana’s economic transformation in recent decades is not a mirage but then neither are the public finance challenges of the moment. In the face of an 11.7% of GDP fiscal deficit, 11.6% of GDP tax revenue and 76.1% of GDP public debt, the cabinet has ample reason to view itself as a war-time government. This situation necessitated the introduction of new taxes in the 2021 budget – namely a 1% increase in the National Health Levy, a 1% increase in VAT as a Covid-19 Health Levy, a 5% pre-profit tax on bank earnings, GHS 0.20 added per litre of fuel for the Energy Sector Recovery Levy (this levy also adds GHS 0.18 to a kilogram of LPG) and GHS 0.10 added per litre of fuel for a Sanitation and Pollution Levy. See: Ghana to establish new tax courts to improve collection.

The simultaneous coming into effect of most of the above provisions over the May Day weekend has led to a sudden leap in prices for essential goods and services. Fuel has increased at most filling stations from GHS 5.45 (USD 0.94) per litre to GHS 6.13 (USD 1.06), the country’s largest transport union will on Wednesday announce a fare increase that could hit 30% and the country’s largest mobile operator has increased charges by 1%. Businesses that had been trying to lessen the impact on their customers will now be left with little choice but to pass on costs – according to a manager at a chain of mini supermarkets: “We tried to absorb as many of the price shocks as we could during the worst of the covid period in 2020 but we’re now having to pass on some of that cost to our customers due to these new measures. I just called the guy we use to bring goods from the port to our stores and he told me he’ll likely have to increase his price by 20%.”. This will have an impact on the general price level[1].

The outrage on social media relates not only to the increasing cost of living but also to wider socio-economic issues faced. For example, the perception that highly polluting illegal mining (galamsey) is being allowed to carry on unchecked for the financial benefit of a select few. power and water being rationed in certain areas, graduates struggling to find gainful employment, inadequate wage growth and ongoing corruption. Also, importantly, insufficient ‘trickle-down’ from successful activities where they are taking place. Speaking with a mason in the capital, Accra, we were told: “nobody can tell me that there is no money in Ghana, just look at the house I’m working on[2]. Rich people are getting richer, and we are stuck down here whilst they enjoy. all these increases, they can afford it but not us.”

Theoretically, a war time footing should be accompanied by a war time cabinet and war time communication. However, Ghana’s president Nana Addo Dankwa Akuffo-Addo often refuses to be drawn into debates on issues of controversy (see his silence on issues such as the PDS scandal, the Agyapa Royalties Deal and the recent election petition) so it is unlikely that he will make any comment on the current unrest. Cabinet appointments do not cut across traditional lines of party-political support. See: New numbers: Ghana’s political algebra. And New Patriotic Party (NPP) loyalists, members, MPs and even ministers have been quick to jump to the defence of the current administration’s record, misjudging current public sentiment. The hashtags #FixYourself, #GhanaIsBeingFixed and #NanaIsFixingIt have all also been trending on Twitter. One NPP MP has already been forced into an apology for sharing an image calling those using the #FixTheCountry hashtag “stupid” (gyimie).

Outlook – No easy fix

In response to these grievances, the National Petroleum Authority has announced a decrease in petroleum margins from GHS 0.17 to GHS 0.09. This followed a crunch meeting with the Minister of Energy Matthew Opoku Prempeh aka ‘Napo’ and other downstream oil sector representatives. This has done little to quell pushback thus far, and there are plans underway for a mass protest under the #FixTheCountry banner on Friday, 9 May. The security services will have to decide whether to allow the demonstration to proceed and if so, how heavily to police it.

Cost of living and political demonstrations are a tried and tested part of Ghana’s political fabric.  Moreover, this may be a chance to have an honest and open dialogue about the Ghanaian social contract 64 years after independence. Authorities may feel less threatened by the momentum and aesthetics associated with such a debate this far from elections. The next polls are scheduled for December 2024. That said, there are other reasons to be careful. Ghana still has a number of COVID-19 restrictions in place, if poorly observed. And the risk from the pandemic is real.

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[1] Headline inflation was 10.3% nationally in March 2021 but 17.7% in Greater Accra. NB the central bank’s inflation target is 8% +/- two percentage points.

[2] An executive villa in an upmarket residential area.

*Photocredit: Songhai Advisory

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