Ghana to slash ministers’ salaries to support economy

Ghana’s government has announced a raft of measures including injecting $2bn (£1.5bn) into the economy to help prop up its falling currency, and slashing the salaries of government appointees, including ministers and heads of state-owned enterprises, by 30%.

Finance Minister Ken Ofori-Atta said the measures were to help Ghana cope with the impact of Covid-19 and the current rise in crude oil prices, caused by the Ukraine war.

At a press conference, Mr Ofori-Atta also announced a further 10% cut in government spending, as well as a more than 1% reduction in prices of petroleum products.

The West African country has been struggling to deal with the rising cost of living due to inflation and the falling value of its currency, the cedi.

On Monday, Ghana’s central bank also increased the interest rate for lending to commercial banks to 17%.

This will increase the cost of borrowing for individuals and businesses, experts say.