The world is battling a condition of rising consumer price levels or simply inflation, as countries are experiencing record-breaking inflation rates. The Russia-Ukraine war has exacerbated the hike in prices, especially energy prices as a result of scarcity due to supply chain disruptions. Indeed Nigeria and other African countries are therefore currently facing very significant increases in the prices of goods and services.
Insecurity is a serious factor contributing to inflation in Nigeria, the largest economy in Africa. Farmers now must take great personal risks to access their farmlands, imperilling local harvests and causing the nation to rely on imports to meet local demand for food.
The inflation rate in Ghana hit a 19-year high at 31.7% in July 2022. The economic deterioration in the country has triggered protests and calls for cost of living allowances. The surge in inflation was partly caused by a drastic depreciation of the cedi since January. According to Bloomberg, the Ghanaian cedi is Africa’s worst-performing currency since January 2022 after weakening by over 24%.
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Contributed by: Oyekunle Adesiyan