The decision by the government of Ghana to begin formal engagements with the International Monetary Fund (IMF) for an economic support has received mixed reactions from analysts, civil society organizations as well as the general public.
Whilst some people believe the move by the government is good others think otherwise. Prominent among those in favor of the decision is Professor Peter Quartey, who described government’s decision to go to the International Monetary Fund (IMF) as a move that will gradually bring back investor confidence into Ghana’s economy.
According to the Director of the Institute of Statistical, Social and Economic Research (ISSER), going to the IMF will send a signal to investors that Ghana will follow strict fiscal measures to attain economic growth.
Prof. Quartey explained that the country needs to boost investor confidence to attract funding into key sectors of the economy. He indicated that the IMF will help achieve that feat by strengthening Ghana’s balance of payment to withstand shocks.
“Let us be real, going through a program doesn’t start immediately. You have to start slowly and then get the result in the future. But definitely, it will build investor confidence for Ghana. The IMF is primarily known for supporting countries to have a strong balance of payment sheet and this is what they will help to achieve”.
Prof. Quartey
Prof. Quartey however, emphasized that the rebound of the economy will take time to achieve since the support will be developed into a program before it is implemented.
Trades Union Congress kicks against suggestion
On the contrary, the Trades Union Congress (TUC) has kicked against the move by the government because it believes previous IMF interventions have not been able to address the country’s economic challenges, so such a move will only worsen the country’s economic challenges.
The General Secretary of the TUC, Dr. Yaw Baah, was particularly concerned because of the conditions attached to IMF’s support.
“Government has been to IMF 16 times for IMF programmes but we are where we are today. Therefore, that is not the solution. It’s like saying that this is not working so let’s do more of it. It doesn’t make sense”.
Dr. Yaw Baah
Dr. Yaw Baah, therefore proposed homegrown solutions to deal with the situation, adding that “we will be very surprised if government goes to IMF’.
“It’s not only government that is running the country; we have trade unions; we have business organizations. I know that Ghanaians have solutions to our problems. Ghana government should bring all of us together let us discuss the issues one after the other. I’m very confident we have a solution”.
Dr. Yaw Baah
President calls for formal engagement with IMF
President Akufo-Addo has directed the Finance Minister, Ken Ofori-Atta, to begin formal engagements with the International Monetary Fund for an economic support.
A statement signed by the Information Minister, Kojo Oppong Nkrumah, dated July 1, 2022 indicated that there had already been a conversation between the IMF boss, Kristalina Georgieva and President Akufo-Addo on government’s decision to engage the Fund.
“The President of the Republic, Nana Addo-Dankwa Akufo-Addo, has authorised Finance Minister, Ken Ofori-Atta, to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic programme put together by the Government of Ghana”.
Kojo Oppong Nkrumah
Cabinet at a meeting on June 30, 2022, supported government’s decision to pursue an economic programme from the Fund, the statement indicated.
The engagement with the IMF, according to the statement, will seek to provide a balance of payment 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 Russian-Ukraine crisis.
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