Deputy Minister of Finance, Dr. John Kumah, has disclosed that government is currently engaging stakeholders in the Ghanaian economy on the Enhanced Domestic Program in an effort to build consensus before formal negotiations with the IMF begins.
Speaking on PM Express Business Edition, the Deputy Finance Minister noted that the Enhanced Domestic Program, which will be supported by the IMF, is ready but government’s engagement with stakeholders is intent to garner confidence and support of Ghanaians for the program.
“It is more than ready. In fact, it’s been ready for a very long time even though we had not announced it. I think it’s at a stage where we are doing a lot of stakeholder engagements to make sure we have inputs of as many stakeholders in the Ghanaian economy as possible.
“Civil society groups, all kinds of people, investors, people who also have a stake in our economy, and of course all the departments and agencies who are also going to be affected someway somehow and the entire economy. Everybody has to be engaged at different levels and of course even the youth, TUC, all kinds of Unions, so that we are able to have a program that is well accepted and bought into by everybody”.Dr. John Kumah
The government is hoping that its decision to subscribe to an IMF program will improve the country’s policy credibility and restore investor confidence in the economy. The policy credibility is important in regaining access to the capital market to raise long-term funds, boosting development partner disbursements and unlocking other financing sources.
The support of the fund, the government believes, will also help restore debt sustainability and macroeconomic stability to support green growth, economic transformation and job creation, while protecting social spending.
The government has already held a meeting with some officials of the IMF to secure a deal for the country.
IMF deal to be finalized by the end of the year
The IMF Managing Director, Kristalina Georgieva, in a close-door meeting with President Akufo-Addo during the Africa Adaptation Summit, disclosed the deal between Ghana and the IMF would be finalized before the end of the year.
Ghana is seeking to raise $3 billion through an IMF support-program to help resolve some of its immediate economic challenges, especially balance of payment constraints.
After rebounding to 5.4% in 2021, Ghana’s recovery was hit by another unforeseen setback- Russia’s invasion of Ukraine – a war which has significantly ravaged economies around the world with many global currencies registering unprecedented depreciation against the US Dollar.
The Ghana Cedi was ranked among the weakest currencies in the world last month. Commenting on the Cedi, Dr. John Kumah noted that almost all currencies across the world are experiencing depreciation and so critics of the government’s fiscal policies cannot blame the poor performing cedi on fiscal mismanagement.
Dr. John Kumah assured Ghanaians that government has put in place some measures that it believes would stabilize the cedi against the dollar and shore up the country’s reserves.