Ex-President, John Mahama has proposed that the Akufo-Addo government urgently convenes a meeting where Ghanaian experts will fashion out credible programs and policies to revive the ailing economy.
“A national dialogue on the economy, bringing some of our best brains together will serve us well, even as we prepare for debt restructuring and negotiation of an IMF program.”
In a Facebook post, Mr. Mahama said the steep depreciation of Ghana’s cedi shows that the mid-year budget review did not achieve its planned goal.
According to him, investors still do not have confidence in the Ghanaian economy resulting in it being downgraded further.
“There appears to be no end to the problems with the Ghanaian economy, with the recent downgrade to CCC+/C Junk status.”
Mr. Mahama who’s seeking a comeback to the Presidency noted that the Akufo-Addo government is at its wit’s end and has no strategy to put the economy back on track.
“Unfortunately, no credible remedial plans have been put forward by the government to salvage the economy.”
The Finance Ministry on Monday expressed disappointment at Standard and Poor’s downgrading the country’s sovereign credit rating but said it was determined to quickly emerge from its economic rut.
The rating agency on Friday lowered Ghana’s local and foreign currency credit ratings to CCC+/C from B-/B, pointing to the government’s “limited commercial financing options, and constrained external and fiscal buffers”.
“The government is committed and is confident that it will successfully emerge from these challenges in the shortest possible time, as we have demonstrated the track record to do so,” it said.
Moody’s and Fitch both downgraded Ghana at the beginning of the year, drawing criticism from Finance Minister Ken Ofori-Atta, who said international rating agencies were institutionally biased against African economies.
Ghana’s central bank has raised its main lending rate by 550 basis points since the end of last year to rein in spiraling inflation, which reached an 18-year high of 28.9% in June. The cedi currency has depreciated nearly 30% over the same period.