Effects Of The COVID-19 On The Socio-Economic Life Of Ghana

Introduction

Despite substantial advances in medical research over recent years, disease outbreaks continue to wreak immeasurable havoc on global economies. Recall the Ebola pandemic in 2014, the Severe Acute Respiratory syndrome (early 2000s) and the recent Coronavirus disease pandemic in 2019, COVID-19.

This has led world governing bodies such as the World Health Organisation (WHO), International Monetary Fund (IMF), World Bank, United Nations World Tourism Organisation (UNWTO), and other affiliated global agencies making projections about the potential losses the COVID-19 pandemic can engender on World economies. In December 2019, the World Health Organisation received reports from China that there was an outbreak of a novel coronavirus which had never been seen in medical research history.

Given the global spread of the disease, the World Health Organisation declared COVID-19 a global pandemic months later (WHO, 2020). Globally, as of 5th August 2020 recorded cases stand at 18,805,392 with 706,445 deaths and over 11,977,394 recoveries. Ghana’s reported cases also stand at 39,075,199 deaths, and 35,563 recoveries (MOH/GHS, 2020; Worldometer, 2020). Staggering as the current figures may be in terms of real losses and potential losses, this essay assesses the effects of Covid-19 on Ghana’s economy and indicate ways in which the pandemic has affected the social life of Ghana.

Economic Impacts of the COVID-19 pandemic on the economy of Ghana

Economically, the COVID-19 pandemic has unleashed immense chaos on global economies in terms of real and potential losses irrespective of their economic standing. Ghana’s economy has not been spared the negative ramifications.

Preliminary data gleaned from the Ghanaian situation has it that Ghana had already incurred fresh debt in respect of the IMF Rapid Credit Facility of one billion dollars to aid the fight against an invisible enemy, the COVID-19. This undoubtedly has ballooned Ghana’s total debt stock and comes with dire economic and fiscal impacts especially that Ghana’s recent Moody’s credit outlook has been changed from positive to negative (Moody’s, 2020).

For instance, the World Bank has lent US$ 1 million to Ghana under the Rapid Credit Facility (RCF) to aid the fight against COVID-19. In the first quarter of 2020, Ghana added GHȻ 16.9 billion to its debt stock, taking it to GHȻ 236.1 billion. This means Ghana added almost GHȻ 20 billion to its debt stock in the subsequent three months, which coincided with the harshest periods of the COVID-19 pandemic. Prior to these revelations, Ghana’s credit rating had been downgraded from a positive to negative outlook, making the country unattractive to lending institutions.

Many businesses, public and private have had to close down since the lockdown and employers had inevitably had to lay off employees, pause salaries, cut remunerations amid losing business to restrictions. The tourism and hospitality industry is one sector that has also been worst hit by the COVID-19 pandemic.

Coming from the back of a successful implementation of the Year of Return in 2019, government’s plan to launch the Beyond the Return campaign in early 2020 had to be cancelled. This led to the Government of Ghana (GoG) to institute relief packages for highly affected businesses. The GoG in April, 2020 announced a stimulus package of GHȻ 600 million to be disbursed among businesses in Ghana that had been impacted by the pandemic.

Also, the GoG announced a relief package for citizens under restrictions; the package included free access to water for all households across the country, fully absorbed electricity bills for one million active lifeline customers, 50% rebate on electricity bills for other customers for three months, i.e. April, May, and June. Again, to keep the frontline health workers whose lives are imperilled in the line of duty handling such an infectious disease, GoG also announced a 50% salary raise for three months from April, May and June. Furthermore, the GoG also announced a GHȻ 350,000 insurance cover for all frontline workers in the fight against COVID-19 (Presidential Address on COVID-19). These are all economic costs that skyrockets government’s spending.

Social Impacts of the COVID-19 pandemic on the economy of Ghana

A significant social impact of the COVID-19 pandemic in Ghana saw the imposition of movement restrictions and ban on social gatherings including religious gatherings as churches, mosques, political rallies, wedding parties, business meetings, factory houses, markets, sports festivals and so on.

Given the statistics on Ghana’s public sector which employs roughly 2 million people, with the rest of the working class participating in the private and informal sector. Many of these private sector players obtain a living from their daily engagements in hand works, so amid these restrictions on gatherings, many of these workers are now unemployed and this has damning implications for their ability to settle their basic family needs.

Pandemics such as COVID-19 compound prevailing gender inequalities and vulnerabilities, increasing risks of abuse. During disease outbreaks, women and girls are mainly at higher risk of experiencing intimate partner violence and other forms of domestic violence due to heightened tensions in the household. In 2016 for instance, approximately 27.7 per cent of Ghanaian women had experienced at least one form of domestic violence (physical, economic, psychological, social and sexual violence). Some months back, Joy News Ghana reported on cases where needy girls were being lured into prostitution.

According to the young girls, male neighbours who saw how vulnerable they were as a result of the COVID-19 offered food, money and other social essentials in exchange for sex. Most of these vulnerable girls may have had their parents losing their daily source of livelihood. The Plan International Ghana has observed that teenage pregnancy and child marriage is likely to be on the upsurge, especially in the rural areas, as children stayed out of school and economic life heightens.

According to them, economic hardship as a result of the pandemic could force parents to give off their children for marriage as an alternative source of income for the family. The sad reality is that many, most especially the girl-child, remain exposed to such exploitations as the global pandemic continue to wreak mayhem on the life of the ordinary Ghanaian.

Issues relating to school dropout rates, crime and domestic violence of all forms, infections rate of COVID-19 and other forms of vices that thwart the social fabric of the Ghanaian society have been reported. The issue of stigmatisation has gained popularity in the media landscape as recovered patients endure unsavoury reactions from their neighbours. These developments have challenged the warm and hospitable culture of Ghanaians in terms of their relationship with others. The COVID-19 disease has proven that in such times it is through self-isolation and division that we survive. Stand together, unite and we all fall.

Conclusion

A major observation on the impacts of the COVID-19 pandemic reveals that the current and potential losses could trigger economic recessions or meltdowns with increasing job losses, salary cuts, business closures, diminished per capita income, GDP slumps, low productivity, and increased national and corporate indebtedness among others. On the socio-political front, the government had to terminate religious and political gatherings, and other social gatherings as meetings, conferences, funerals, weddings, parties, naming ceremonies among others. These actions that were triggered as a result of the COVID-19 disease outbreak have destabilised and upended the social life of many Ghanaians. These sad narratives will continue to dominate global and national airwaves until treatment or vaccine is developed to save lives.

In the meantime, what remains paramount is strict adherence to the outlined health protocols; frequent washing of hands with soap under running water, frequent use of alcohol-based sanitizers, wearing of face masks, social distancing, avoiding overcrowded places among others. As suggestions have been made that the virus may be with us for some time, it is important that we accept and diligently follow the health guidelines to reduce the spread of COVID-19.

ABOUT THE AUTHOR

Nana Ama Nyanta Amoah is a freelance writer and researcher who enjoys bringing to bare issues that confront society.

Email: [email protected]