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0 Economist and Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye has advised newly elected President of Ghana, John Dramani Mahama, to review the country’s ongoing programme with the International Monetary Fund (IMF).
Dr. Kwakye believes that such a review will bolster investor confidence in the Cedi and the local economy.
In a post on his X page, Dr. Kwakye stated, “To strengthen investor confidence in the cedi and economy, President Mahama should constitute a team to review the IMF program. President Mahama should also constitute an Economic Advisory Council (EAC) of independent professionals to advise him on the economy.”
Dr. Kwakye’s suggestion comes despite recent comments from the IMF, which noted that Ghana had made progress in strengthening its fiscal position ahead of the general elections on Saturday, December 7. The IMF emphasized the importance of maintaining fiscal policy adjustments before and after the elections to ensure public finances are on a sustainable path and to reduce financing needs while cushioning the vulnerable from the impact of fiscal adjustments.
The IMF highlighted the need for continued efforts to enhance domestic revenue mobilization and streamline primary expenditure. These efforts should be supported by improvements in tax administration, strengthening expenditure control and management of arrears, implementing an enhanced fiscal responsibility framework, and improving the management of State-Owned Enterprises (SOEs).
The IMF also stressed the importance of addressing challenges in the energy sector to contain fiscal risks. Building on the recent successful Eurobond exchange, the authorities should finalize their comprehensive debt restructuring in a timely manner.
The IMF noted that the authorities have maintained a prudent monetary policy stance while taking decisive steps to rebuild foreign reserve buffers. Going forward, maintaining an appropriately tight monetary stance, given the upside risks to inflation, and enhancing exchange rate flexibility are essential.
The IMF’s comments followed the completion of the third review of Ghana’s 36-month Extended Credit Facility Arrangement on Monday, December 2, allowing for the immediate disbursement of SDR 269.1 million, approximately US$360 million.
The post Review the IMF deal – IEA’s Kwakye tells Mahama first appeared on 3News.
