Investors have begun to react positively to Ghana’s decision to opt for an International Monetary Fund programme, Gabby Asare Otchere-Darko, a political strategist and prominent member of the New Patriotic Party, has said.
Speaking to Kofi Abotsi on TownHall Talk on Asaase 99.5 Accra on Friday (1 July 2022), Otchere-Darko said: “If you doubt this, then check the economic reaction to our going to the IMF today, because, after the announcement, some investors in the market want to come back and invest.
“I think going to the IMF is not an issue of tying the hands of the next government, but you want a situation where you don’t put the next government in a situation that’s worse than what you met,” he said.
Otchere-Darko argued that governments to come will be glad the current government opted for an IMF programme to stabilise the economy.
“The next government, whether NPP or NDC, will be happier that the economy has been stabilised,” he said.
Start formal talks with IMF now
On Friday, the government announced that President Akufo-Addo has authorised the Minister for Finance, Ken Ofori-Atta, to open formal engagement with the International Monetary Fund (IMF).
A statement signed by the Information Minister, Kojo Oppong Nkrumah, said: “This follows a telephone conservation between the president and the IMF managing director, Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund.
“The engagement with the IMF will seek to provide balance-of-payments support as part of a broader effort to quicken Ghana’s build-back in the face of challenges induced by the COVID-19 pandemic and, recently, the Russia-Ukraine crises,” the statement added.
With domestic revenue mobilisation not performing to budgetary expectations, coupled with Ghana’s inability to raise money on the international capital markets because leading credit rating agencies have downgraded the economy, many economists have suggested that the government seek IMF support.
Fred Dzakpata
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