Economist Shares Reasons Behind Collapse of Ghana’s Middle Class

Chartered Economist Ali Sidi says Ghana’s debt restructuring programme had a major impact on the middle class.

Speaking on Anopa Bosuo on ATV, he said many middle-class Ghanaians invested their money in government bonds, especially domestic bonds, expecting to get their money and interest when the bonds matured.

He said during the COVID-19 period, the government faced financial difficulties and later introduced the debt restructuring programme.

According to him, when investors were due to receive their money, the government said it did not have enough money to pay them.

He said about GH¢137 billion was used in the debt restructuring, with many middle-class Ghanaians affected because their savings were invested in government bonds.

Mr. Sidi said the interest on the bonds was also reduced. He added that investors did not receive payments in 2023 and 2024, while about GH¢41 billion was paid to them in 2025.

He said the situation badly affected the middle class. He also referred to a 2022 World Bank report which said about 850,000 people had been pushed below the poverty line.

Mr. Sidi said the rising cost of living also made things worse, as inflation reached 54% and the exchange rate pushed the prices of goods and services higher.

He said the difficult economic conditions contributed to the decline of Ghana’s middle class.

By Agnes Kusi