Godwin Edudzi Tameklo, a member of the National Democratic Congress (NDC) legal team, has criticized the Akufo-Addo-Bawumia administration, claiming that it sought the IMF bailout in order to make Ghana’s financial statements appear favorable so that it could reenter the Eurobond market.

President Nana Addo Dankwa Akufo-Addo and Dr. Mahamudu Bawumia, according to attorney Tameklo, have not failed to borrow since taking office, till 2022.

He noted in an interview on May 22 that “when this government came to power, they came with a borrowing mindset.” In a conversation about the $3 billion IMF agreement announced on Thursday, May 18, he made this statement. The lawyer maintains that an IMF program is not the answer to Ghana’s economic problems.

He claimed that the current administration had borrowed a total of $13 billion, over the course of six consecutive years but has nothing to show for it.

“If you have borrowed this much with corresponding capital intensive projects, Ghanaians will not have a problem.”
Godwin Edudzi Tameklo

After the 2020 elections, according to him, the Akuffo-Addo administration ought to have asked for a bailout.

However, according to Palgrave Boakye-Danquah, the government’s spokesperson on governance and security, the NDC government would have visited the IMF after an election.

He stressed that the New Patriotic Party (NPP) was a thinking government that sought domestic solutions, before looking outside.

“Clearly to go into an IMF programme immediately after a general election means that one is not ready to think outside the box to bring solutions to solve our own predicaments economically. So that’s the NDC for you.”
Palgrave Boakye-Danquah

Government Could Have Contacted The IMF Far Sooner

Dr. Theo Acheampong, an economist and political risk analyst, suggested that the government could have approached the IMF for a bailout much earlier than it did.

He said that the administration disregarded earlier wise economic counsel to use the Fund from economists.

Following Ghana’s acquisition of the Paris Club funding assurance on Friday, May 12, the Board of the Fund unanimously approved Ghana’s bailout during a meeting in Washington on May 17 (Wednesday).

However before this, Ken Ofori-Atta, the Finance Minister, had already stated that the administration would not go to the Fund, because several new measures had been implemented to address the country’s economic problems.

Dr. Theo Acheampong said: “We could have gone to the IMF much earlier if the government had actually listed to sound economic advice coming from various quarters including some of us working in academia and in civil society.”

The Bank of Ghana (BoG) has received the first tranche of the $3 billion Extended Credit Facility (ECF), according to confirmation from the Ministry of Finance. The money, according to the Ministry, will assist establish a firm basis for inclusive growth, maintain the nation’s debt obligations, and restore macroeconomic stability.

The second tranche is anticipated to be received during the next six months, according to Finance Minister Mr. Ofori-Atta.

Stéphane Roudet, the head of the IMF mission in Ghana, said that the $3 billion bailout would lead to changes in the cocoa and energy industries. He added that the program would lead to measures that would promote private sector investment and increase global reserves.

“There will be reforms in the energy and cocoa sectors. It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future.”
Stéphane Roudet