President Akuffo Addo wants to build a Ghanaian economy that wouldn’t need an IMF bailout

Ghana has successfully completed the Extended Credit Facility (ECF) programme of the International Monetary fund (IMF). This was made known by the country’s Minister for Finance in Parliament, Minister Ken Ofori-Atta.

It is worthy to note that this will be the 16th financial bailout from IMF that is being concluded. The previous one was completed in 2006 under the administration of President John Kufuor.

The president of the country Nana Akuffo Addo, while commenting on the news said that “what I am saying to Ghanaians, to all of us, is that, in the 62 years of our independence, this was the 16th IMF bailout programme that the nation had gone into. Let it be the last time that we would resort to an IMF programme.”

Ghana used to be the poster child for Africa after it started producing oil in 2011. This position didn’t last for long as the economy of the country came crashing and didn’t recover until now that it seems that there are positive news.

In order to save the economy, the John Mahama led administration in 2015 sought for credit facility from the IMF which came with an expiry date of 2017. The loan was taken despite having a huge debt that it could not service as well as erratic power supplies which saw the inflation of the country going high and the currency dwindling. IMF gave the loan to Ghana
to support a reform program that would boost growth and help cut poverty by restoring macroeconomic stability through tighter fiscal discipline, strengthened public finances, and slowing inflation.

Surprisingly, two years into the government of Nana Akuffo Addo the story of Ghana seems to have changed. Inflation in the country has reduced. Ghana also sold Eurobond of $3 billion which was its biggest ever with more than six times oversubscription.

However, in order for the country not to go for a 17th bailout, it needs to put in place, the legislation that outlaws large deficits to the establishment of fiscal supervisory councils as well as an aggressive banking-sector overhaul.