A recent report by the Women in Informal Employment: Globalizing and Organizing (WIEGO) has shed light on the harsh reality faced by 850,000 Ghanaians, predominantly women, who were pushed into extreme poverty in 2022.
This staggering number can be attributed to various factors, including high levels of government debt and the closure of international markets to Ghana.
The research, conducted in October 2023, revealed that despite a slight economic recovery from the COVID-19 pandemic in 2021, a significant portion of the population found themselves vulnerable to inflationary pressures, resulting in a cost-of-living crisis. The depreciation of the cedi, closure of international markets, and disruptions to the global supply chain due to the war in Ukraine all played a role in exacerbating the situation.
The inflation rate, averaging at 35 per cent at the time of the research, was especially high for essential goods such as food and non-alcoholic beverages, health services, housing, water, electricity, transport, and education. This surge in prices further deepened the plight of those already living on the edge.
The report highlighted that workers in informal employment were disproportionately affected by the cost-of-living crisis, with 89 per cent of the employed population nationally and 83 per cent in Accra belonging to this category. These individuals often lack access to crucial safety nets like pension and poverty relief programs, cash transfers, and microfinance schemes, making them even more susceptible to economic shocks.
It is clear that urgent action is needed to address the plight of those pushed into extreme poverty in Ghana. Efforts should focus on providing support to vulnerable populations, strengthening social safety nets, and implementing measures to stabilize the economy and mitigate the impact of global crises on the most marginalized members of society.
