- August 9, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
Ghanaian business mogul, Dr Kofi Amoah has raised issues against the decision by the Government of Ghana to head to the International Monetary Fund (IMF) for support.
In his view, going to the Fund brings to light the endemic issue of the ways to create wealth internally.
“Every so often, we go back to the IMF, that means that there is an endemic issue of the way we think of ourselves, the way we organise ourselves to create wealth and to create jobs for our people,” Dr Amoah told TV3’s Paa Kwesi Asare on the Business Focusprogramme on Monday August 8.
He added “For me… Ghanaians are looking for quick fixes, what do we do do now? There is no quick fix, the only thing that is available to us and to any other country is that you organise yourselves properly for your people to be productively engaged.
On the decision to go the Bretton Woods institution, President Nana Addo Dankwa Akufo-Addo assured the people of Ghana that his administration would negotiate a good deal with the Fund..
He said a deal that will ensure they the economy is developed more than it it is today will negotiated for.
“We will negotiate a good deal, a deal that will allow us to build a strong economy that we had before,” he said at the delegates conference of the New Patriotic Party (NPP)at the Accra Sports Stadium on Saturday July 6.
The IMF staff team led by Carlo Sdralevich visited Ghana and concluded its initial discussions with the government on Wednesday July 13.
The team arrived in the country on July 6 to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by an IMF lending arrangement.
At the conclusion of the mission, Mr. Sdralevich issued the following statement said “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”