IMF deal won’t bring immediate end to Ghana’s economic woes – Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has said that the country’s recent agreement with the International Monetary Fund (IMF) will help to restore confidence and reopen avenues that have been closed to the country in recent years.

In a speech to the nation on Sunday night, Akufo-Addo said that the IMF deal will not spell the immediate end of the difficulties that Ghana is facing, but that it is a positive step that will help to put the country back on track.

“Access to the IMF facility will not spell the immediate end of the difficulties we are in presently. But the fact that we’ve been able to negotiate such a deal sends a positive message to our creditors and investors,” Akufo-Addo said during his address on May 28, 2023.

Akufo-Addo said that the IMF deal will help to restore confidence in the Ghanaian economy, which has been battered by the COVID-19 pandemic and the war in Ukraine.

He said that the deal will also help to reopen avenues that have been closed to Ghana in recent years, such as access to international capital markets.

“It should lead to the restoration of confidence and the reopening of avenues that have been closed to us this past year and a half,” Akufo-Addo said adding that it will also “lead to the resumption of infrastructural projects that have stalled”.

He said that the government will need the support of Ghanaians to implement the reforms that are required to make the deal work.

Background

Ghana reached an agreement with the IMF a few days ago on a $3 billion bailout package. Ghana received $600 million out of the $3 billion extended credit facility last week.

The IMF deal comes at a time when Ghana is facing a number of economic challenges, including high inflation, a depreciating currency, and a widening budget deficit amid a worsening debt stock.

The war in Ukraine has also had a negative impact on the Ghanaian economy, according to official reports.

The IMF deal is expected to help Ghana to stabilize its economy and restore confidence in the Ghanaian financial system.