The General Agricultural Workers Union (GAWU) has sounded the alarm that essential food prices are set to rise further in the coming months if illegal mining activities, commonly known as galamsey, are not effectively curbed.
This warning comes amidst government interventions aimed at managing inflation, which has so far failed to fully address the underlying issues affecting food production in Ghana.
According to the Ghana Statistical Service (GSS), inflation for September 2024 rose to 21.5%, up from 20.4% in August, driven primarily by a sharp increase in food inflation. Food inflation surged to 22.1%, a significant leap from the 19.1% recorded in the previous month.
Interestingly, while inflation is climbing, the policy rate, which is traditionally used to control inflation, has been reduced by 200 basis points. Typically, when inflation rises, the central bank is expected to raise the policy rate to curb inflationary pressures by tightening monetary policy.
However, in Ghana, the opposite has occurred. This unconventional move by the Bank of Ghana raises questions about the potential effectiveness of this strategy in controlling the current inflationary trends, particularly with food prices surging.
Edward Kareweh, a former General Secretary and current member of GAWU, cautioned that consumers should prepare for further hikes in food prices due to the adverse effects of galamsey and a prolonged dry spell, both of which have contributed to a drop in agricultural output.
“This year 2024, we are not going to have any significant increase in food production in the country. If total output is going to fall, it will push food inflation up. From now till December and in the early part of 2025, we should expect food inflation to push the national inflation up,” Kareweh remarked.
Kareweh emphasized that, despite government efforts to stabilize food prices, these interventions will not have the desired impact if galamsey activities continue to ravage the nation’s farmlands and water bodies.
The destruction of arable land caused by illegal mining is significantly limiting the country’s ability to produce essential food items, placing further strain on an already stretched food supply.
