Professor of finance and economics at the University of Ghana (UG), Prof. Godfred Bokpin has disclosed how Ghana loses $2.4B annually to illegal mining.
According to him, Ghana is not benefiting optimally nor generating revenue from the country’s resources.
He notes that this is directly affecting citizens’ pockets through food inflation.
Prof. Bokpin emphasized “Every Ghanaian is currently paying for this irresponsible mining. Every Ghanaian. You don’t need to live so close to the river bodies. We are all paying for it right now. One, through higher food inflation.”
In an interview with JoyNews Prof Bokpin highlighted the alarming trend of food inflation outpacing non-food inflation indicating it is a direct consequence of illegal mining activities being practiced in Ghana.
Prof. Bokpin explained that the recent surge in inflation, which reached a staggering 54.1% in 2022 according to the World Bank, is directly linked to the government’s overdraft extension to the Bank of Ghana.
This intervention, amounting to over 77 billion cedis in 2022, was a necessary step taken to address the government’s financial deficit and the monetization of public debt.
However, he argues that the resulting injection of liquidity has fueled inflation.
“That jump in inflation pushed over 850,000 people into poverty. They have not recovered,” he said.
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Source: Jemimah Gati/ATLFMNEWS
