Mr. Habibu Adam, a Senior Economist at the office of the Senior Presidential Advisor has disclosed, that the supply and cost of fertilizers and other essential inputs may increase substantially because of the global supply challenges which would lead to an upsurge in the cost of production across the globe.
“Russian-Ukraine supplies 40 percent of grains to the world. Most cooking oils also come from that area. My information is that most of the iron rods imported into Ghana come from Ukraine. All these will be in either short supply or very expensive to get,” Mr. Adam stated.
Mr. Adam revealed this at the Ghana News Agency-Tema Industrial News Hub Boardroom Dialogue platform when he was speaking on the theme; “Effects of Russia and Ukraine war on the global economy: prospects and challenges for Ghana," as monitored by the Communication for Development and Advocacy Consult (CDA Consult) in Tema.
The GNA Tema Industrial News Hub Boardroom Dialogue is a media think-tank platform for state and non-state and commercial and business operators to communicate to the world and address global issues.
He said Ghana, a predominantly import led economy would be forced to import its needs at a higher price due to import induced inflation as a result of the continued Russian- Ukraine war.
"Since the cheap Russian energy resources (oil and gas) and other supplies from Russia and Ukraine are no longer available, the cost of production across the globe has become high and Ghana, an import-led economy has been forced to import its needs at a higher price.
“Hence, the import-induced inflation Ghana is experiencing now," he said.
Mr. Adam emphasized that with the war happening from late February, commodity prices hit record highs with oil alone reaching a 14-year high at US$130 per barrel in March 2022.