The government of Ghana in collaboration with trade unions in the country has officially agreed to increase the salaries of all public servants by 30 percent for 2023.
This decision was made public in a joint statement which was obtained by Africa Today News, New York as the country struggles to reduce debt and tackle rampant inflation.
The cedi dropped heavily against the US dollar last year as government spending cuts and central bank interest rate hikes failed to tame the spiraling inflation, which rose to a new high of 54 percent last month.
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According to reports, trade unions in the country, that represent public servants, started negotiating salary rises with the government in November, with the two parties settling on a 30 percent increase across board on Thursday, effective from January 1, 2023.
The negotiations started a few months after hardship spurred street protests that pushed the government to seek help from the International Monetary Fund.
Africa Today News, New York recalls that sometime in March of 2022, Ghana announced spending cuts which included lowering of ministers’ salaries.
The West African country is battling its worst economic crisis in a generation, with inflation hovering at a record 50.3 percent, the highest in 21 years.
In December, the West African country, agreed on a $3 billion credit deal with the International Monetary Fund, IMF, the multilateral lender has confirmed as the country battles its worst economic crisis in decades.
Africa Today News, New York recalls that the International Monetary Fund, IMF has a few weeks ago dispatched a team to Ghana this week to start negotiations on a potential loan package for Ghana.
President Nana Akufo-Addo of the country earlier rejected requests for financial assistance from the IMF, but last week he approved the action as the nation battles skyrocketing inflation.