The Minister for Finance, Ken Ofori-Atta, has said the US$750 million Afreximbank loan facility received in August 2022 and the traditional Cocoa Syndication Loan, expected in the last quarter of 2022, will stabilize the cedi and build the forex reserves.
With growth outturn of 3.4% and 4.8% in Q1 and Q2 of 2022 respectively, coupled with modest improvements in the fiscal position, the Minister noted that the economy is gradually on the upswing despite the numerous shocks faced over the past two years.
Briefing the media on the state of Ghana’s economy and the ongoing IMF negotiations, Mr Ofori-Atta disclosed the capitalization of the Development Bank Ghana (DBG), with US$750million to engender job creation and economic growth, YouStart entrepreneurship programme, and the constitution of a 5-Member Committee to engage with financial sector players, would revitalize the economy.
“I am extremely confident about where we will land on this journey. We as a country have survived a 142 per cent inflation, yellow-corn hysteria, mass exodus from our country and more recently a successful exit from the 2015 Extended Credit Facility,” he further stated.
The Minister called for a concerted national effort to overcome the current hurdles facing the country, adding that those challenges would soon be over.
“I remind each and every one that Ghana is the only place we have. Its progress and prosperity are our collective duty. We have overcome many challenges and risen to the occasion many times. This is another challenge which we must overcome. This too shall pass if we remain united and purposeful,” he stated.
Mr Ofori-Atta said the government, since the first quarter of 2022, has cut discretionary expenditures in the budget by 30%, in addition to other expenditure measures including restraints on the purchase of new vehicles and a moratorium on non-statutory travel.
He said the priority of the government since the COVID-19 episode and the Russia-Ukraine war has been to address macro stability and welfare challenges that confronted the economy.
He disclosed that the government was finalizing its post-Covid-19 economic recovery programme as the domestic blueprint to engage the International Monetary Fund (IMF).
“Our economic programme contains a set of time-bound structural reforms and fiscal consolidation measures to place debt levels and fiscal accounts on a sustainable path over the medium term,” he said.
Though the programme has already benefitted from inputs from key stakeholders including CSOs, social partners, academia and Parliament, the Minister said more stakeholder engagements would be held to solicit further inputs.
On the IMF negotiations, he disclosed that no agreement had been reached with the Fund on the proposed programme as well as the parameters of any debt operations.
He stressed that those depended on the debt sustainability analysis results, adding that the team was in the process of completing the debt sustainability analysis.
The Minister said the Government Team was working with the IMF Team to update the medium-term macro-fiscal framework to inform the Fund’s programme design. “Government is committed to ensuring that a comprehensive package is negotiated to restore and sustain macroeconomic stability, ensuring durable and inclusive growth and promoting social protection,” Mr Ofori-Atta said.
He gave the assurance that government shall continue to actively engage all stakeholders clearly and transparently to fast-track the IMF negotiation process.
Dzifa Hukporti, ISD
