Ken Ofori-Atta, the Minister of Finance, has issued a warning that obtaining the extended credit facility from the International Monetary Fund (IMF) will not put an end to the nation’s economic problems.

While providing an update on Ghana’s economy, Mr. Ofori-Atta said that the IMF-backed program is more of a step before a program, that will achieve the necessary economic changes put into place.

“We have an ambitious agenda reform. Let me state clearly that securing an IMF programme is not an end to our current challenges though it has significantly paved the way for the implementation of an ambitious and well-thought-out programme of reform for our economy and country.”
Ken Ofori-Atta

The government’s plans to implement the necessary economic reforms, such as revenue maximization, energy sector reforms, and others, were also hinted by him. The actual work of realignment, adjustment, and the path to consistent economic growth, the Finance Minister underscored, has just begun.

In order to urgently rebuild the walls of the republic, he urged the Ghanaian people to gird themselves for the necessary reform, particularly in expenditure control, non-arrears accumulation, revenue growth, ECG revenue collection, and energy sector reforms.

“That said, our reform programme, the Post Covid-19 for Economic Growth, now supported by a three-year extended credit facility with the IMF is built on clear targets and strong policy and structural measures. Over the medium term, the economic growth-backed IMF programme seeks to promote a credible fiscal consolidation programme anchored by strong domestic revenue mobilisation and high spending efficiency.”
Ken Ofori-Atta

On May 17, the IMF’s Executive Board approved Ghana’s request for a $3 billion bailout to help the nation’s faltering economy. On May 19, Ghana received the first payment of the $3 billion bailout package from the IMF, totaling $600 million.

Ghana To Benefit Financially From Multilateral Partners

According to the Finance Minister, Ken Ofori-Atta, the government is anticipated to receive around $6.2 billion from its multilateral partners between 2023 and 2026.

The Minister of Finance said the government has developed Ghana’s Post-COVID-19 Programme for Economic Growth (PC-PEG), which is backed by the International Monetary Fund and includes all the necessary changes to resuscitate the economy.

According to Mr. Ofori-Atta, the administration is committed to implementing the reforms and anticipates receiving $2 billion in funding from multilateral partners by the ending of the year 2023.

“Our commitment to these reforms is matched by our relentless pursuit of innovation and strengthened partnerships. Backed by the renewed drive for reforms, the government is working towards securing significant support from our multilateral partners.
“Altogether, and including the IMF funds, World Bank and AfDB support, we expect multilateral support of about US$2.0 billion for 2023 and US$6.2 billion between 2023 and 2026. We expect the World Bank to provide a total support of US$1.6 billion whilst the AfDB provides a total support of US$200 million over the programme period.”
Ken Ofori-Atta

The Minister further disclosed “we expect to mobilize catalytic funding of US$30 million in 2023 and US$330 million between 2023 and 2026 from bilateral creditors.”