Ghana Explores Fresh IMF Support Amid Economic Recovery Drive – Ato Forson
New finance minister-designate outlines plans for fiscal discipline, debt restructuring, and key sector reforms to stabilize the economy
- Ghana seeks additional IMF funding to cushion the economy during ongoing recovery effort
- Plans to cut public spending and restart domestic bond issuance by mid-year
- Cocoa sector overhaul prioritized to address funding, production, and crop challenges
Ghana’s newly sworn-in administration, led by President John Dramani Mahama, is considering additional financial assistance from the International Monetary Fund (IMF) under its ongoing three-year program.
The move aims to stabilize the economy amid a challenging fiscal environment, according to finance minister-designate Cassiel Ato Forson.
Forson emphasized the government’s commitment to collaborating with the IMF and other international partners to secure extra funding. “The reliance on Treasury bills has not been very helpful. We need to diversify financing sources,” Forson stated, ahead of discussions with an IMF team visiting Accra.
The administration also plans to implement significant public spending cuts to curb inflation and reduce economic waste. “There’s a lot of wastage in the system, and we will cut them,” Forson assured, adding that domestic bond issuance would resume by mid-year.
Ghana, a major producer of gold and cocoa, faced a debt default in 2022, prompting an extensive restructuring process that is nearing completion. Forson confirmed that the government aims to finalize agreements with non-Eurobond commercial creditors.
Overhauling Key Sectors
President Mahama, who previously held office from 2012 to 2017, has pledged to address economic hardships and create jobs. His cabinet picks, including John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general, reflect a focus on rapid economic recovery.
Forson also highlighted plans to revamp Ghana’s crucial cocoa sector, addressing funding challenges, diseased crops, and production inefficiencies.
Despite challenges, the administration remains optimistic about stabilizing the economy, with parliamentary support from Mahama’s National Democratic Congress (NDC), which holds a two-thirds majority.
The IMF has yet to comment on Ghana’s potential request for additional support.
