By : Lloyd Mahachi
Ghana’s President-elect, John Dramani Mahama, has announced that he will not abandon the country’s $3 billion rescue package with the International Monetary Fund (IMF). However, he wants to review the deal to tackle wasteful state spending and upgrade the energy sector. Mahama, who won the December 7 election by a wide margin, plans to take office on January 7 and make adjustments to the IMF program to suit Ghana’s current reality. He believes that this is necessary to ensure that the country’s economy is managed in a way that benefits all Ghanaians.
Mahama’s main focus will be on reducing state expenditure and improving the energy sector. He believes that the “multiplicity of taxes” agreed to as part of the IMF program has made Ghana “unpleasant for business”. He also thinks that the IMF has not put enough pressure on the government to cut wasteful expenditures. To address this, Mahama plans to reduce spending, including by the president’s office. He emphasized that “if the president is asking us to tighten our belt, he must also tighten his”. This means that the president’s office will have to make sacrifices and reduce its spending in order to set a good example for the rest of the country.
The IMF deal has helped to halve inflation and return the economy to growth, but Mahama says more work is needed to ease economic hardship. He plans to tackle inflation and currency depreciation to mitigate a cost-of-living crisis in the West African nation. Mahama’s National Democratic Congress party also won comfortably in a parliamentary vote held on December 7. This means that Mahama will have the support of parliament as he implements his economic policies.
Ghana is facing a critical situation in the energy sector, with the electricity company of Ghana being the “sick man” of the whole value chain. Mahama plans to quickly fix this issue to avoid sustained power outages. He has also announced that the IMF has agreed to send an early mission to conduct a regular review, which will focus on “how to smoothen out the debt restructuring” that is now in its final lap. This review will help to identify areas where Ghana can improve its economic management and make adjustments to the IMF program as needed.
Mahama’s plans to review the IMF deal are seen as a positive step towards addressing Ghana’s economic challenges. His commitment to reducing state expenditure and improving the energy sector is expected to have a positive impact on the country’s economy. With his experience as a former president, Mahama is well-positioned to lead Ghana out of its current economic crisis. He has a deep understanding of the country’s economic challenges and has a clear vision for how to address them.
Mahama’s announcement is a sign that Ghana is taking steps to address its economic challenges. The country has a long way to go, but with Mahama’s leadership and commitment to economic reform, there is hope for a brighter economic future. Ghanaians will be watching closely as Mahama implements his economic policies and works to improve the country’s economy.
Editor : Josephine Mahachi
