In the center of Accra is an abandoned construction site that is a symbol of both ambition and disaster in Ghana.. The National Cathedral of Ghana is to be built here, a passionate project of the President of the country, conceived as a national landmark and religious center that could compete with Westminster Abbey and the Grand Mosque of Abu Dhabi. Costing several million dollars, the building is located on a tree-lined street near the main thoroughfare - Independence Avenue. It was decided to build it in 2017, when Ghana celebrated the 60th anniversary of liberation from the British Empire.. When completed, it will be a 5,000-seat place of worship for official events such as presidential inaugurations and state funerals..

But six years later, President Nana Akufo-Addo's grandiose vision that defines his legacy has stalled - as the economy he leads is in disrepair and citizens suffer from crushing inflation..

The construction project is a cautionary tale not only for Ghana, but for many countries in Africa that have overspent on infrastructure and now have to pay the bills..

Ghana has long been regarded as a success story and model for African development. It is a major producer of gold and cocoa and has one of the highest gross domestic product per capita in the region.. Ghana has enjoyed a solid democracy since the early 1990s, and the government has been operating relatively efficiently, providing decent levels of public services, including free education.. Seeking a connection to the land of their ancestors, the global African diaspora considers this city a must-visit, and every winter young people from the UK, Europe and the US flock here to experience its rich culture and vibrant nightlife..

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The current government has created an image of fiscal responsibility and technocratic acumen that has allowed it to enter commercial debt markets at decent interest rates..

Now that reputation lies in ruins. Ghana agreed to a $3 billion IMF bailout when it defaulted on its debt last December, a fate that could soon befall another 19 countries on the continent, according to the fund.. Like Ghana, many countries have borrowed heavily to finance projects—railways, roads, ports, or airports—that have not generated enough revenue to pay off debt, especially in the face of high interest rates and a strong dollar..

To complicate matters further, the threat of insecurity is now on Ghana's doorstep due to unrest in Burkina Faso, its neighbor to the north, the new epicenter of jihadist unrest in the Sahel, a semi-arid strip south of the Sahara..

However, despite such uncertain prospects, the president remains determined to build a cathedral to serve the country's 33 million people, 71 percent of whom are Christians..

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Many in Ghana doubt his priorities. Some 87 percent of Ghanaians believe their country is headed in the wrong direction, according to Accra-based Afrobarometer.. They blame the government, and protests erupted last year over the high cost of living..

The cost of building the cathedral has risen to $400 million, four times the original budget.. The government says donors are being brought in to help cover costs and allow construction to continue, and has contributed most of the $58 million that has already been spent..

Paul Opoku-Mensah, chief executive of the project, says the building, designed by eminent Ghanaian-British architect Sir David Adjaye, will serve as a national monument, a tourist magnet and an economic hit that will pay for itself when completed..

" And the church becomes such a structure,"

Government claims Ghana's economic misery was caused by a twin external shock - Covid-19, which brought the economy to a halt, and Russia's invasion of Ukraine, which sent global food and energy prices skyrocketing. It is these "

Ernest Addison, governor of the Bank of Ghana, the country's central bank, says the decision by three major rating agencies to downgrade Ghana to 'unwanted' status has complicated the economic situation in 2022 as prices have risen steadily.

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But analysts say this story is only half true.. James Zansi, chief economist for Ghana at the International Growth Centre, a global think tank at Oxford University and the London School of Economics, argues that Ghana was "

The government has borrowed heavily to shield the economy from the effects of the pandemic and may have avoided a recession as a result. But the country's debt as a percentage of GDP rose from 62.7% in 2020 to more than 100% last year, according to Treasury Secretary Ken Ofori-Atta.. Debt servicing now consumes about 70 percent of government revenue.

Despite a growing debt load, the ruling New Patriotic Party in 2020, according to Zansi, encourages excessive spending in an election year.

The administration stopped charging for water supply and introduced cheaper electricity tariffs. Analysts say the policy could be most effective if targeted at those most in need of help during a difficult year.; instead, it was widely available to everyone, including city dwellers who did not need support..

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Much of Ghana's government spending came at a time when interest rates were low. Ghana has been feeding on cheap money, raising nearly $17bn in Eurobonds that the Treasury Department says have frequently overfilled for nine years in a row..

But as central banks began raising rates to control inflation (the Bank of Ghana raised rates by 1,250 basis points from March 2022), Ghana found itself closed to international debt markets as concerns grew over its ability to repay its debts..

Since then, the government has been forced to rely heavily on the domestic capital market, where interest rates are as high as 40%, and central bank funding of 37.9 billion tsedii ($3.2 billion) in 2022.. According to Henry Telly, an economist at the International Growth Center, some of the money injected into the economy by the central bank may have contributed to fueling inflation..

Telly says the Ghanaian government should have " " It can be used when a different strategy is needed,"

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Ghana did turn to the IMF for help in 2022, when it became clear that its economy needed external assistance.. Analysts hope economic crisis and upcoming IMF program will spur sweeping reforms in Ghana. Leaks that deprive the government of critical revenue need to be addressed. Auditor General Johnson Akuamoah Asiedu said in a report that Ghana missed nearly $3 billion in revenue in 2021 due to what he called "

At the same time, experts are unanimous that the size of the government of Ghana should be reduced.. At the start of Akufo-Addo's presidency in 2017, he defended his decision to appoint 110 ministers as " There are currently about 90 ministers, some of whom have two or three deputies..

" For example, Ghana has separate ministries of transport, development of railways, roads and highways, and aviation.. Ministries of Information and Communications are separate structures.

In addition to government size, corruption is a growing concern. Last month, a 2021 report was leaked to the press alleging that government officials were disrupting the fight against illegal gold mining.. The government denies the allegations, but opposition MPs call for a bipartisan investigation..