The International Monetary Fund (IMF) request for assistance from the government of Ghana has been criticized by Ghanaian business magnate Dr. Kofi Amoah.
He believes that visiting the Fund sheds light on the persistent problem of how to generate wealth internally.
On Monday, August 8, Dr. Amoah said to TV3's Paa Kwesi Asare on the Business Focus program, "Every so often, we go back to the IMF, which means that there is an endemic issue of the way we think of ourselves, the way we organize ourselves to create wealth and to create jobs for our people."
"For me," he continued, "Ghanaians are searching for quick fixes; what do we do now? There is no quick fix; the only thing we and any other country can do is organize properly so that their citizens are actively engaged in productive work.
President Nana Addo Dankwa Akufo-Addo promised the people of Ghana that his administration would strike a favourable agreement with the Fund in regards to the choice to join the Bretton Woods institution.
He stated that negotiations will take place for a deal that will guarantee that the economy develops more than it does now.
At the New Patriotic Party (NPP) delegates conference on Saturday, July 6, at the Accra Sports Stadium, he declared, "We will negotiate a good deal, a deal that will allow us to build a strong economy that we had before."
On Wednesday, July 13, the IMF staff delegation led by Carlo Sdralevich left Ghana after having initial talks with the government.
On July 6, the team entered the nation to evaluate the economic climate and talk about the general framework of the government's Enhanced Domestic Programme that could be financed by an IMF lending arrangement.
Mr. Sdralevich made the following statement following the mission's conclusion: "Ghana is dealing with a difficult economic and social situation amidst an increasingly challenging global environment. The COVID-19 pandemic has resulted in a dramatic worsening of the financial and debt situation. Investors' worries have also led to credit rating downgrades, capital outflows, a loss of access to external markets, and an increase in domestic borrowing costs. Ghana is also still recovering from the Covid-19 pandemic shock and has little room for manoeuvre as a result of the global economic shock brought on by the conflict in Ukraine. These unfavourable events have contributed to a slowdown in economic growth, an increase in unpaid bills, a significant depreciation of the exchange rate, and a rise in inflation.
Initial discussions on a comprehensive reform package to reestablish macroeconomic stability and establish debt sustainability were held by the IMF team. The group made strides in determining the short-term policy priorities and the economic situation. The discussions centred on ensuring the credibility of the monetary policy and exchange rate regimes, protecting financial sector stability, and designing reforms to boost growth, create jobs, and strengthen governance. In the upcoming weeks, IMF staff will continue to closely monitor the economic and social situation, work with the authorities to develop their Enhanced Domestic Program that could be backed by an IMF arrangement, and consult with a wide range of stakeholders.
In accordance with the IMF's policies, "We reaffirm our commitment to support Ghana during this challenging time." The staff thanks the government, civil society, and development partners for their helpful participation and support throughout the mission.
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