An economist at the Institute for Fiscal Studies (IFS) has warned that the ongoing Middle East crisis could trigger a surge in inflation in Ghana, as rising global energy prices begin to ripple through the domestic economy.

In an interview with Xinhua, economist Leslie Dwight Mensah said the impact of the conflict is already being felt through higher fuel and transportation costs, placing additional financial strain on households and businesses.

“With the spike in energy prices worldwide due to the Middle East conflict, welfare will decline and people will be poorer than they otherwise would be without this crisis,” Mensah said.

Rising Costs and Inflationary Pressure

Mensah noted that energy costs are among the most significant expenses for both households and businesses, second only to food for households and wages for firms, making the current surge particularly concerning.

He warned that increased fuel prices will raise the cost of electricity generation in countries like Ghana that rely partly on fossil fuels, leading to higher tariffs for consumers and increased production costs for businesses.

“In many industries, energy is the number two cost item after payroll,” he explained. “It’s going to hit production costs, squeeze output, and ultimately reduce profits.”

According to Mensah, these pressures are likely to feed directly into inflation, creating broader macroeconomic challenges.

“This may spark a surge in inflation, which will in turn put pressure on interest rates,” he said. “Borrowing costs could rise, affecting the private sector.”

Broader Economic Risks

The economist cautioned that sustained inflation could have a cascading effect on Ghana’s economy, including reduced investment and lower consumer spending.

“Higher interest rates will undermine investment and private consumption, and this situation can ultimately be negative for economic growth,” he added.

Mensah also pointed to growing pressure on the government to intervene, warning that such measures could strain public finances if not carefully managed.

Government Response and Policy Options

The Ghanaian government recently announced a temporary measure to absorb part of the increase in petroleum prices for one month. Mensah described the move as “prudent” because it is time-bound and offers short-term relief to households and businesses.

However, he emphasized that interventions must be targeted to remain sustainable.

“A well-designed targeted intervention would serve as a blueprint for responding to such a crisis in the future,” he said.

At the same time, Mensah cautioned that excessive government protection could discourage necessary behavioral changes in energy consumption.

“These crises should elicit a behavioral response from consumers to be more efficient. But when government provides substantial protection, it mutes that response,” he explained.

Call for Structural Reforms

Looking beyond immediate measures, Mensah urged Ghana to strengthen its domestic petroleum production capacity to improve supply security during global disruptions.

He also called for increased investment in renewable energy, arguing that long-term reliance on fossil fuels leaves economies vulnerable to external shocks.

“The world cannot continue depending on fossil fuels all the time,” he said, adding that Ghana should sustain fiscal discipline to create space for renewable energy investments.

Outlook

As global energy markets remain volatile, the economist stressed that the duration of the crisis will determine the depth of its impact.

“If this persists for long, the impact will get bigger and last longer,” Mensah warned.

Ghanaian business tycoon praises former president Akufo-Addo’s intervention as local firm assumes control of major Western Region gold mine in landmark local ownership deal

Accra, Ghana – April 18, 2026 – Prominent Ghanaian businessman Ibrahim Mahama has publicly expressed gratitude to former President Nana Addo Dankwa Akufo-Addo for his instrumental support in securing the successful takeover of the Damang Mine by his company, Engineers and Planners.

Speaking at the official handover ceremony held at the Damang Mine in the Western Region on Saturday, Mahama described the transition as the culmination of years of stakeholder engagement that began when Gold Fields Ghana Limited signalled its intention to wind down operations in 2022.

Government Intervention Key to Success

Mahama credited the former president with playing a decisive role in facilitating the deal.

“I went there, and I must thank our former President. He gave me a document to sit with Gold Fields, negotiate, and keep the mine going,” he stated during the ceremony.

He explained that government facilitation enabled structured negotiations between the parties, leading to a formal agreement that followed all regulatory and licensing processes. The takeover followed a competitive bidding process after the expiration of Gold Fields’ lease, with Engineers and Planners emerging as the successful bidder under government supervision.

Mahama emphasised that the acquisition goes beyond a simple commercial transaction.

“So I engaged the government and told them that mining is not just buying equipment and working in there. It is the key people that you need to put together,” he said, highlighting the importance of building Ghanaian capacity in large-scale mining.

Ambitious Development Plans Unveiled

Before finalising the deal, Engineers and Planners conducted extensive technical and financial due diligence, including a bankable feasibility study. Mahama revealed strong financial backing from banks.

“We did a bankable study. We looked at it and noticed that we could do it. We approached a few of the banks in here. One has given us 650 million, another 600 million,” he disclosed.

The company has outlined bold long-term plans to transform the Damang Mine and surrounding communities:

• Construction of a new airport at the mine site, expected within six months, to enable direct flights to Accra.
• Development of a high-quality concrete or asphalt road linking Damang to Cape Coast within two years.
• Reinvestment of mine revenues into local infrastructure, including hospitals and sports facilities.
• Mahama’s personal commitment to build his own residence in the area as a symbol of long-term dedication to the community.

“What I want to say is that whatever money we make from here, we will reinvest it here,” he pledged.

Significance for Ghana’s Mining Sector

The Damang Mine takeover represents a significant milestone in Ghana’s push for greater local participation in its critical mining industry. It demonstrates growing confidence in indigenous Ghanaian companies to manage complex, large-scale gold mining operations previously dominated by multinational firms.

This development comes at a time when Ghana continues to strengthen its position as one of Africa’s leading gold producers while emphasising local content and community development in the extractive sector.

Atlanta, USA – A young Black inventor from Atlanta, Julian Brown, has stunned the scientific community and gone viral worldwide after developing a backyard process that converts everyday plastic waste into usable diesel, gasoline, and jet fuel.

Born in Tennessee and raised in Atlanta, Brown — a self-taught welder with no formal degree or laboratory — created a system called “Plastoline.”

Using an upgraded form of pyrolysis (a thermal decomposition process), enhanced with microwaves and solar energy for cleaner conversion, he built a small reactor capable of turning discarded plastics back into high-quality fuel.

Independent tests reportedly confirmed that the diesel and gasoline produced are among the most refined seen, and he has successfully powered vehicles with the fuel in live demonstrations.

Brown launched a startup called Nature Jab and began sharing his experiments on Instagram and TikTok, where the videos quickly gained millions of views globally. Despite suffering second-degree burns in a reactor explosion, he refused to abandon the project.

He attempted to raise $1 million to scale the technology but secured only tens of thousands of dollars. In July 2025, he posted that he was under attack before temporarily vanishing from public view.

He has since re-emerged, with supporters calling for his protection and greater investment in his work.

The innovation has sparked particular excitement across Africa, where plastic waste accumulates in massive quantities in landfills and communities.

Experts say Brown’s technology could offer a practical solution for turning waste into energy, addressing both environmental pollution and fuel shortages on the continent.

Commentators have criticised the lack of substantial support from investors and the broader community, questioning why a breakthrough with such transformative potential, especially from a young Black inventor, has not received wider backing.