President Akufo-Addo has stated that his government’s decision to secure a $3 billion extended credit facility with the International Monetary Fund (IMF) has yielded positive results, which is evident in the Ghanaian economy’s recovery since the facility’s acquisition in 2023.
During a meeting at the Jubilee House with the Managing Director of the International Monetary Fund, Kristalina Georgieva, and her delegation, as part of her two-day visit to Ghana, President Akufo-Addo expressed his commitment to continuing the implementation of sound economic policies. He assured his administration’s dedication to the ongoing IMF program, emphasizing the importance of staying the course for the country’s economic stability and growth.
“It is obvious that the decision we made in July 2022 to come and seek your support for the difficulty economic circumstances which we were involved as far as I am concerned is a decision that has already paid off. It has paid off in terms of the clear turn around that we are seeing in our economy.
“The very dire circumstances in which we were at the time we took that difficult decision and where we are today is a very clear testimony of the fact that our decision to seek your support was a decision that was correct and we have had very positive benefits from it” President Akufo-Addo remarked.
“The stronger than predicted growth, the systematic decline in inflation in Ghana and the decline of interest rates, the relatively stable exchange rate which we have had for our currency which was deeply troubled at one stage; These are all important signals that our economy is stabilizing.
“I believe that it is the cooperation that we have had from you and the association that we have had from the World Bank that has brought us to this point. That is a rescue mission and the more important matter for us now is that having laid the foundation, how we can now engineer the rapid growth which is the way in which the mass of our people can benefit from the development of our nation” President Akufo-Addo continued.
In her discussion with President Akufo-Addo, Managing Director of the IMF, Kristalina Georgieva, remarked that the IMF recognizes confidence in the Ghanaian economy, both domestically and internationally. She observed that despite initial projections, the global economy has displayed remarkable resilience, with a growth rate surpassing earlier forecasts.
“For Ghana this year cannot be more decisive because it is the year to bring [back] confidence in Ghana domestically and internationally at the level it was before [the global economic challenges] or higher.
“It is possible because we are seeing a world economy that is slightly better, so the economy attitudes are better and the critical resource of money will go where confidence in the capacity of the country to perform is highest so Ghana can be at this place as it was before” Kristalina Georgieva mentioned.
“For Ghana this year cannot be more decisive because it is the year to bring [back] confidence in Ghana domestically and internationally at the level it was before [the global economic challenges] or higher.
“It is possible because we are seeing a world economy that is slightly better, so the economy attitudes are better and the critical resource of money will go where confidence in the capacity of the country to perform is highest so Ghana can be at this place as it was before,” Kristalina Georgieva said.
“We need to stay the cause, your growth is better than expected, your inflation is lower than expected, the progress in debt restructuring has been faster than expected and the task now is to cement what has been achieved” Madam Georgieva stated.
In 2023, Ghana successfully secured a $3 billion IMF Extended Credit Facility (ECF) following President Akufo-Addo’s authorization on July 1, 2022, for the then Minister of Finance, Ken Ofori-Atta, to initiate formal negotiations with the IMF. This decision aimed to bolster Ghana’s recovery efforts amidst challenges stemming from the COVID-19 pandemic and the geopolitical conflict between Russia and Ukraine.
Currently, in the first year of its implementation, Ghana’s three-year IMF program has seen disbursements totaling $1.2 billion from the IMF, distributed in two tranches of $600 million each. Furthermore, Ghana has concluded negotiations with its external creditors, while ongoing discussions are underway with its external private creditors.
STORY BY ; PORTIA AKU SHIKA GAFAH
