|
Getting your Trinity Audio player ready...
|
Ghana’s new government, under President John Dramani Mahama, is considering seeking extra funding from the International Monetary Fund (IMF) during the ongoing three-year programme to stabilize the economy, according to Finance Minister-designate Cassiel Ato Forson.
Speaking to reporters on Thursday, Forson said, “We are committed to work with the IMF, but we also want to ensure that we can raise financing; additional finance, working with IMF and other domestic, international partners.”
Forson, a 46-year-old chartered accountant with advanced degrees in taxation and finance, highlighted the limitations of relying heavily on Treasury bills, noting, “The reliance on Treasury bills and others has not been very helpful.”
Economic Priorities: Spending Cuts and Domestic Bonds
Forson outlined plans to reduce public spending to curb inflation and restore fiscal discipline. “There is a lot of wastage in the system, and we will cut them,” he said. This strategy aims to create room for the government to restart domestic bond issuance by mid-year.
The country, a major producer of gold and cocoa, defaulted on most of its external debt in 2022, leading to a painful restructuring process. Forson confirmed that the government intends to conclude this process by reaching a deal with non-Eurobond commercial creditors.
Revisiting IMF Deal
During his campaign, President Mahama pledged to renegotiate the terms of Ghana’s IMF bailout deal, a promise that resonated with other reformist leaders in emerging markets. However, analysts believe Mahama’s administration has limited flexibility and is unlikely to abandon the current IMF programme despite campaign rhetoric.
Forson’s statement comes ahead of a meeting with an IMF team currently in Accra. The IMF has not commented on the government’s potential request for additional support.
Reshaping Key Sectors
Forson also emphasized the need to overhaul the cocoa sector, which has faced significant challenges in recent years. “We need to look at the issues of funding, diseased crops, and production very well. The whole sector needs an overhaul,” he stated.
Building a New Cabinet
President Mahama, who previously led Ghana from 2012 to 2017, has pledged to quickly assemble a competent government to address economic discontent and boost job creation. On Thursday, the presidency announced other key appointments, including John Abdulai Jinapor as Energy Minister and Dominic Akuritinga Ayine as Attorney General and Justice Minister.
The National Democratic Congress (NDC), which holds a two-thirds majority in Parliament, will have to approve all ministerial nominees.
Legacy of Crisis
The new government inherits an economy recovering from its worst crisis in decades. Forson, who served as Deputy Finance Minister under Mahama’s previous administration, has faced legal challenges in the past, including charges related to public fund losses in an ambulance supply deal, for which he was acquitted.
As Ghana navigates these economic and structural challenges, Forson’s leadership at the Finance Ministry will play a critical role in shaping the country’s recovery and future growth.
Email Daily Mail GH: stories@dailymailgh.com or
Whatsapp: +233(0)509928122
