Former Member of Parliament for Sekondi and legal practitioner, Andrew Egyapa Mercer, has argued that the economic consequences of the Russia-Ukraine War were global in nature, affecting supply chains, inflation, and commodity prices across countries, including Ghana.
Speaking on Metro TV, the NPP member said he referenced the Russia-Ukraine conflict to illustrate how global shocks disrupt economies even in countries not directly involved in the crisis.
“I mentioned Russia-Ukraine because COVID had its own dynamics. The Russian-Ukraine issue, I mentioned, disrupted global supply chain. And that impacted every country across the world. In fact, in the almighty United States of America, you recall, even toilet paper was being rationed in supermarkets. Inflation jumped to all-time highs across the world.”
He further argued that global oil price movements show how interconnected markets are, noting that crude prices did not rise beyond earlier peaks seen in 2022.
“But you see, there’s still a problem there. Because it’s a fact that even as we admit that anything that happens around the globe can have universal impact, the impact will be different. Yes, I agree. And Russia, Ukraine had a greater impact on crude prices… But that’s a fact. The data is there.”
On oil supply and Ghana’s exposure to global markets, Egyapa Mercer explained that even if Ghana does not directly source crude from certain regions, international benchmark pricing still affects domestic fuel costs.
“Ghana doesn’t take from Hormuz. We don’t. But I’m saying that the impact will still be felt because regardless of your supply source, the price, Brent price, is what is going to determine how much the producer is selling to you. Not where the source of fuel directly is coming from.”
He added that global disruptions can ripple through unrelated sectors, citing shipping costs during the pandemic-era supply chain crisis.
“Same way Russia-Ukraine impacted the disruption of supply chain to the extent that container from China, which doesn’t go anywhere close to Russia-Ukraine, moved from average $2,500 to $15,000. It happened because of the disruption in the supply chain.”
Egyapa Mercer urged that discussions on economic shocks should be separated from partisan politics, warning against politicising global economic challenges.
“So I’m urging all of us to take away the politicking out of it… let’s communicate to our citizens to appreciate the reality of what it is that issues that are not within our control can impact all of us.”
He also acknowledged that Ghana benefits partially from crude exports when prices rise, but stressed that the gains are limited due to production-sharing arrangements.
