The Ghanaian government avoided a strike by public sector employees over wages by striking a deal with the country’s principal labour organisations to raise the cost of living allowance by 15 per cent, according to the announcement made by the country’s finance ministry on Friday.

Consumers in the West African nation are being impacted by rampant inflation, which is presently at a record 29.8 per cent. The trade unions, which include employees in the education and healthcare sectors, had planned to go on strike in the coming weeks if salaries were not boosted.

“Settlement achieved with labour unions is likely to relieve circumstances for Ghanaian public sector employees,” the Ghanaian Ministry of Finance and Economic Planning said on Twitter. “This comes in light of the effect that present global economic headwinds are having on the Ghanaian economy.”

“All industrial activities have also been called off,” the statement read, adding that the decision would take effect retrospectively starting on July 1st.

Ghana, a nation that is rich in oil, cocoa, and gold production, is now dealing with significant economic issues, the most significant of which are its huge debt load and rising budget deficit. It is now engaged in collaborative efforts with the International Monetary Fund (IMF) to design a prospective assistance package.