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Ghana’s newly sworn-in government, led by President John Dramani Mahama, is considering seeking extra financial assistance from the International Monetary Fund (IMF) as part of the country’s ongoing three-year programme with the lender. The goal is to stabilize the economy and mitigate financial challenges, according to Finance Minister-designate Cassiel Ato Forson.
In his first address to reporters as the nominee for the key finance portfolio, Forson outlined the administration’s plans to collaborate with the IMF and other financial partners to secure additional funding.
“We are committed to working with the IMF, but we also want to ensure that we can raise additional financing through collaboration with the IMF and other domestic and international partners,” Forson said.
The announcement came ahead of a meeting with an IMF delegation currently in Accra. Forson, a chartered accountant with advanced degrees in taxation and finance, criticized over-reliance on Treasury bills, stating, “The reliance on Treasury bills and others has not been very helpful.”
Forson indicated that the government plans to cut public spending to combat inflation and eliminate waste in the system. The measures aim to revive the domestic bond market by mid-year and address inefficiencies in public finance.
“There is a lot of wastage in the system, and we will cut them,” he said.
The new administration has also committed to concluding Ghana’s ongoing external debt restructuring process. Ghana defaulted on most of its external debt in 2022, leading to a challenging restructuring effort that is nearing completion. Forson confirmed plans to finalize agreements with non-Eurobond commercial creditors to bring the process to a close.
Forson pledged to address challenges in Ghana’s vital cocoa sector, promising a comprehensive overhaul to resolve issues such as funding, diseased crops, and production inefficiencies.
President Mahama has emphasized forming a capable government to address economic discontent and create jobs. He nominated John Abdulai Jinapor as Energy Minister and Dominic Akuritinga Ayine as Attorney General and Justice Minister.
The new government takes office amid the country’s most severe economic crisis in decades. With the National Democratic Congress (NDC) holding a two-thirds parliamentary majority, the approval of Mahama’s cabinet nominees is expected to proceed smoothly.
During his campaign, Mahama pledged to renegotiate Ghana’s bailout terms with the IMF, though market analysts believe the administration has limited flexibility to abandon the current programme.
Forson, previously acquitted in a case involving public funds and an ambulance supply deal, reaffirmed the administration’s focus on tackling economic challenges and implementing reforms to rebuild confidence in Ghana’s economy.
