Economist and CEO of Progeny Ventures, Dr. Kofi Amoah says too much propaganda made him believe that Ghana was not going to enter into a program under the International Monetary Fund (IMF).
He said he had faith in the managers of the economy who constantly swore that the country would not opt for an IMF program despite the challenging economic times
Speaking in an interview with TV3’s Paa Kwesi Asare on Business Focus on Monday, August 8, Dr. Amoah said he was disappointed to hear the country had decided to enter a program with the fund
“Our government was telling us that we’re not going back to the IMF, so I had no reason to doubt them, but that means that too much propaganda was being done and not enough transparency and veracity and now we find ourselves where we are”
According to him what we need to do now in the short term is to find a way of reducing the level of risk but most importantly we need to think about long-term solutions instead of every so often looking for immediate solutions that only paper over the problem.
He said it was time for Ghanaians to put on their patriotic hat and speak the truth.
The Government of Ghana on Friday, July 1 announced that it was seeking support from the IMF.
This followed a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana’s decision to engage with the Fund, a statement by the Ministry of Information said.
This was after Finance Minister Ken Ofori-Atta had earlier indicated on several occasions that the country would not return to the Fund.
The IMF staff team led by Carlo Sdralevich concluded its visit to Ghana with the government of Ghana on Wednesday, July 13, and indicated that the war in Ukraine is affecting Ghana
The team arrived in the country on July 6 to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by an IMF lending arrangement.
After the mission, Mr. Sdralevich issued the following statement said “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.
“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.
“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on sustainably improving fiscal balances while protecting the vulnerable and poor; ensuring the credibility of the monetary policy and exchange rate regimes; preserving financial sector stability, and designing reforms to enhance growth, create jobs, and strengthen governance.
“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation
“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.
“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”