As economies and healthcare systems struggle to cope with COVID-19, we brings you an update on the economic impact and implications on how the coronavirus pandemic is shaping political agendas within the country.
Leadership during the COVID 19 has become essential as most citizens look up to their leaders for hope. It has also revealed the efficiency of some leaders in managing the crisis while others have failed. Most presidents have emerged as unifying and giving a lot of inspiration to their citizens. Most government leadership has also implemented stringent polices such as lockdown, social distancing, closure of schools, suspension of social gathering and closure of businesses and churches.
In Ghana, the leadership has implemented multilateral initiatives to secure social protection for the citizens of the country. Government of Ghana have implemented assistance to most citizens such as the waiver on water bills and electricity bills.
Additionally, health workers on the frontline of coronavirus fight, will get additional 50 percent of basic salary for three months starting April.
The Coronavirus Alleviation Programme by the governments seeks to address the disruption in economic activities, reduce the hardship of citizens, and revitalize industries. The commercial banks are implementing a directive from the Bank of Ghana’s 1.5 percent decrease in the Policy Pate and 2.0 percent in reserve requirement with a GH 3 billion facility, to support industry especially in the pharmaceutical, hospitality, service and manufacturing sectors.
Further the President indicated that government will be providing additional relief, such as extension of the tax filing date from April to June; a two percent reduction of interest rates by banks, effective April 1, 2020. Banks are expected to grant a six-month moratorium of principal repayments to entities in the airline and hospitality industries, such as hotels, restaurants, car rentals, food vendors, taxis, and uber operators. Mobile money users can send up to GHc 100 for free; and a 100 percent to 300 percent increase in the daily transaction limits for mobile money transactions.
The Government of Ghana’s decision to close all of the country’s borders and impose restrictions on public gatherings and movement in response to the Coronavirus outbreak, compelled the Electoral Commission (EC) of Ghana to postpone the completion of the compilation of a new voter register in time for the December 2020 presidential and parliamentary elections.
Covid 19 has affected the political calendar for the country with political parties postponing their usual regional political campaign and the elections of the country may also be postponed. It has also increased government expenditure in tackling the coronavirus in the provision of free test kits, isolation centers among others.
The lack of proper emergency healthcare facilities has forced an economic shutdown, which could have been less severe if adequate treatment facilities had been available. The cost implications of rescuing economies from collapse are immense. Policymakers need to consider how to build and fund proper healthcare systems with enough capacity to deal with this situation and the next pandemic to prevent shut down of economy for long periods of time which affects the day to day activity.
By: Augustina Kweinorkie
