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ImageMoving to Africa after a lifetime in the UK was never going to be easy.  Elvina Quaison shares her experiences of life in Ghana

 

Not so long ago I was on the side of the coin that would get excited about the currency fluctuations; ‘Oh, the pound is so strong! I am going to have so much fun when I get to Ghana.’

Now I am like ‘Bugs, cedi, what are you doing to me!’ The cost of living has gone up by about 17.5% as costs have increased due to the large amount of goods that are imported into the country and paid for in dollars, and this has a knock-on effect on our services (electricity, petrol etc). As the cedi decreases, your spending power decreases and it is not a comfortable or pleasant feeling.

It feels a little like a personal assault. Your currency is obviously linked to your nation and your national sense of self. It is a reflection of how you are functioning as a state, as a people. Currently our cedi is telling us we are becoming increasingly worthless and wouldn’t you prefer to be a nice strong dollar, euro or pound sterling. It is personal.

Overnight Changes

I remember coming to Ghana on holidays and taking my £100, or whatever, and changing it at the Forex bureau and suddenly I was a millionaire. The cedi was at about 10,000ghc to £1. Then the currency went through changes; zeroes were dropped and literally overnight it was something like 2.5ghc to £1.

The cedi had been holding pretty steady until last year. Put it down to the economic downturn (I don’t, because foreign investment and local business were doing well). Put it down to the election review which, while ground-breaking in terms of an election’s outcome being argued legally in court rather than violently on the streets, did have an impact on business, as everybody held their breath (and their wallets) to see what would happen.

This was resolved, no further action was taken, and the current government maintained their seat and peace reigned. However, this did have an effect of slowing down the robust business exchanges that had been taking place. Murmurs of discontent could also be heard from local business people about how this was impacting them.

“Currently our cedi is telling us we are becoming increasingly worthless and wouldn’t you prefer to be a nice strong dollar, euro or pound sterling. It is personal.”

 

Come January 2014, it all just seemed to go a little crazy. The cedi had been going into decline towards the end of 2013, nothing too drastic but definitely enough to be noticeable. Due to the fluctuating nature of the cedi, it has been the norm for businesses to peg their products and services against the dollar. It has been quite common to have homes, cars, hotels and so on quoted in dollars and then paid for with the cedi equivalent.

However, as the cedi was increasingly depreciating, it was becoming clearer that there was a problem. The government’s answer to this was to stop (or enforce the law more strictly) business being carried out in dollars as this was impacting the value of the cedi. Unfortunately, this has not had the desired effect. The cedi continues to slide and, in its path, leaves a degree of disorder and confusion with businesses finding it difficult to price anything consistently as the value changes almost on a daily basis.

Interesting Times

It has been interesting for me being here at this time and being able to see and feel what the devaluation of your currency does to the lives and minds of the people.

I am not a person who really understood or (dare I say it) cared about talk of inflation and interest rates. I didn’t understand, didn’t want to and didn’t think I needed to. It was all politics talk and would float around my head, hardly settling because I felt detached from it. In the UK I would take my salary and just get on with it. Prices would go up marginally; I’d grumble and move on as it didn’t make that great a difference to my life.

I have mentioned before that coming to Ghana and having to get to grips with a cash economy was a great education in valuing money. Ghana does like to teach by experience, so now I am seeing what inflation and devaluation means to my money and my living experience up close and personal.


In real terms, I am on a pretty good wage. When I started my job in August 2013 I was able to buy a ticket to the UK – generally about £700 - and still have about a third of my pay available to me. At present, I would need a month and a half’s pay to buy a ticket and the cedi continues to fall.

Living, working and playing in this environment is an education as I see around me the everyday struggles of people having to figure out how to pay dollar valued school fees, make those mortgage repayments, service those loans and try and maintain their businesses. As a person who is still really only having to look after myself, it is not hitting me as hard… yet. But watching the impact on business owners, families, and people with greater responsibilities and dependents than I, it does feel a little scary and quite depressing.

I see all those news stories of the impact of a devaluing currency coming sharply into focus. It’s no longer a barely 5 minute segment of the news; it is my daily experience (though we are definitely nowhere near the wheelbarrows of money to buy a loaf of bread stage, so please exhale).

“It’s no longer a barely 5 minute segment of the news; it is my daily experience.”

 

However, in true Ghanaian style, people are getting on with life - we talk, we joke and we watch. Debate is raging and people are questioning government as to what their plans and direction are. As this is happening, new businesses are opening in Ghana, opportunities are still being explored and life is still going strong!

For me, I am placing myself in a position to learn from this experience. I am getting an understanding of all those terms that didn’t feel connected to me but which I now see are essential in being able to order your life in this economic system to the best of your ability, wherever you are. Every experience is a chance to learn and, if nothing else, Ghana is ensuring I do that!

Elvina is an entrepreneur who is paving her way in the world of international business. Visit her site at www.silksolutionsglobal.com Contact at Elvina@silksolutionsglobal.com Twitter: @silksolutions
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