The newly sworn-in government of President John Dramani Mahama is considering securing extra funding from the International Monetary Fund (IMF) as part of its ongoing three-year program with the lender. This was disclosed by Finance Minister-designate Dr. Cassiel Ato Forson during a press briefing on Thursday.
Dr. Forson, a seasoned economist and former deputy finance minister, emphasized the administration’s commitment to working with the IMF while exploring other domestic and international financing options.
“We are committed to working with the IMF, but we also want to ensure we can raise additional financing, working with the IMF and other partners,” Forson stated ahead of a meeting with an IMF delegation in Accra.
Addressing Economic Challenges
Ghana, a leading producer of gold and cocoa, defaulted on most of its external debt in 2022, triggering a painful restructuring process that is nearing completion. Dr. Forson disclosed that the government plans to conclude the restructuring by finalizing agreements with non-Eurobond commercial creditors.
He also announced plans to reduce public spending to combat inflation and restart domestic bond issuance by mid-year. “There is a lot of wastage in the system, and we will cut them,” Forson said.
Cocoa Sector Overhaul
Dr. Forson outlined the administration’s intention to revamp the cocoa sector, which has faced significant challenges in recent years, including funding gaps and crop diseases. “The whole sector needs an overhaul,” he stressed.
Ministerial Appointments
President Mahama, who previously served as Ghana’s leader from 2012 to 2017, has swiftly begun assembling a government to tackle economic challenges and address public discontent. Among the key appointments are:
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- John Abdulai Jinapor as Energy Minister.
- Dominic Akuritinga Ayine as Attorney General and Justice Minister.
The National Democratic Congress (NDC), which holds a two-thirds majority in Parliament, is expected to approve these nominations.
Balancing Campaign Promises and Economic Realities
Although Mahama had pledged during his campaign to renegotiate Ghana’s IMF bailout terms, analysts believe he is unlikely to deviate significantly from the current program. This mirrors a broader trend among reformist leaders in emerging markets who must balance campaign rhetoric with fiscal realities.
Dr. Forson’s leadership and the government’s economic policies will be closely watched as Ghana seeks to rebuild an economy emerging from its worst crisis in decades.
