Gov’t could seek more IMF funding – Finance Minister-designate

The new administration under President John Mahama is exploring the possibility of securing additional funding from the International Monetary Fund (IMF) to strengthen Ghana’s economy during its ongoing three-year programme with the global lender.

This was revealed by Finance Minister-designate Dr. Cassiel Ato Forson on Thursday.

Speaking to reporters ahead of discussions with an IMF delegation currently in Accra, Dr. Forson emphasized the government’s commitment to working with the IMF while seeking new financing options.

“We are fully committed to collaborating with the IMF,” Forson stated. “However, we are also focused on raising additional financing, in partnership with the IMF, as well as domestic and international stakeholders.”

He highlighted the limitations of Ghana’s reliance on Treasury bills, calling for a shift to more sustainable funding mechanisms.

Economic Reforms on the Agenda

Dr. Forson, a seasoned chartered accountant with a Master’s in taxation from Oxford and a doctorate in finance, outlined plans to cut public spending and reduce inflation.

“There is significant wastage within the system, and we are determined to eliminate it,” he said. He added that the cost-cutting measures would allow the government to resume domestic bond issuance by the middle of the year.

Ghana’s economy, a leading gold and cocoa producer, is emerging from a severe financial crisis marked by a default on most of its external debt in 2022. Forson assured the public that the new administration is committed to completing the ongoing debt restructuring process, including reaching agreements with non-Eurobond commercial creditors.

Renegotiating IMF Terms

President Mahama, who previously served as Ghana’s leader from 2012 to 2017, campaigned on a promise to revisit the terms of the country’s IMF bailout programme.

Although analysts believe Mahama has little room to drastically alter the existing agreement, his administration’s rhetoric mirrors similar pledges from reformist leaders in other emerging markets, such as Sri Lanka.

Focus on Economic Growth and Job Creation

Since taking office earlier this week, President Mahama has expressed his intent to swiftly tackle public dissatisfaction by rejuvenating the economy and creating jobs.

As part of his cabinet nominations, he named John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general and minister of justice.

The administration inherits an economy recovering from its worst crisis in decades. With a two-thirds majority in Parliament, Mahama’s National Democratic Congress (NDC) is expected to secure swift approval for its ministerial nominees.

Cocoa Sector Overhaul

Dr. Forson also pledged to reform the cocoa sector, which has been grappling with funding issues, diseased crops, and declining production.

“The cocoa industry requires a comprehensive overhaul to address its challenges,” he said.

The finance minister-designate, who previously served as deputy finance minister, had faced legal scrutiny over alleged financial losses in an ambulance supply deal. He was subsequently acquitted of all charges.

Dr. Forson’s plans for economic stabilization, debt restructuring, and sectoral reform will be critical in steering Ghana’s recovery under the Mahama administratio