Ghana’s $3 billion IMF approval is akin to applying emergency breaks to a dangerously moving vehicle

Finally, the painful Domestic Debt Exchange Programme (DDEP) and passage of the Excise Amendment Act encompassing three new taxes on domestic goods, among other IMF- demanded prior actions have paved the way for the approval of the IMF Extended Credit Facility (ECF) of $3 billion for three years for Ghana.

The Bank of Ghana’s (BOG) account has already been credited with the first tranche of $600 million to provide government budget support and resurrect the almost-dead Ghana’s current economic state.

If the Government of Ghana satisfies expected IMF conditionalities for the first 6-month assessment, another tranche of $600 million will be released to the
BOG by the end of November 2023.

The complete acrobatic U-turn on the previous stance of this government NEVER to go to the IMF for a bailout is baffling and at the same time laughable in the sense that it portrays the insincerity and super incompetence of this government.

In one of my write-ups on ‘The IMF debacle under the NPP: A blessing in disguise for Ghanaians’ published in April 2023, I asked a rhetorical question about what would have happened to Ghana’s economy if the IMF fund was not applied by Ken Ofori-Atta. It would have meant that 1) Ken Ofori-Atta would have continued with his ‘smart accounting’ or ‘economic engineering’ actions, 2) He would also have escalated the reckless borrowing in the capital market and 3) Finally, Ghana’s economy would have fatally crashed by now.

I am of the firm believe that this gloomy scenario has been moderated by this IMF bailout and it is a ‘disguise blessing’ for Ghana.

It has been clear to many Ghanaians that Ken Ofori-Atta has been driving the ‘economic vehicle’ of Ghana so dangerously and carelessly! This called for the first-ever censure motion brought against him by the Minority in Parliament while some 80 rebellious NPP MPs called on President Akufo-Addo to sack his non-performing cousin as the Finance Minister.

The dangerous driving style of Ghana’s economy by Ken Ofori-Atta can only get worse since he is still on the post.

The IMF deal of $3 billion has called for prudent management of Ghana’s economy. It will also keep a watchful eye on the BOG and the Finance Minister to do the right things to qualify for the release of the rest of the tranches of money needed by the government.

Despite hardships in terms of expected period adjustment of tariffs, high inflation, freeze on public sector employment, and review of all flagship programmes of the government, it would have been worse if the IMF deal has not activated the emergency breaks to the driver in the person of Ken Ofori-Atta.

Thus, this Ghana’s $3 billion IMF approval is akin to applying emergency breaks to a dangerously moving vehicle. Although applying an emergency break is often uncomfortable to the driver, the passengers on board, and other road users, that is always better than doing nothing and causing a near-fatal accident.

That said, it is unfortunate we got to where we are now. However, Ghanaians who are passengers driven by Ken Ofori-Atta should now make sure that the custodian of the vehicle (Nana Akufo-Addo) changes the driver now!

I also urge Ghanaians to finally demand change in this poorly performing government to pave the way for sustainable job creation and national development come 2024.

As A.B.A Fuseini, the ‘proverbs man’ puts it; if a thief kisses you, make sure you check or count your teeth afterward. Let us continue to check the actions of Ken Ofori-Atta although the IMF has sent its staff to Ghana to observe what is happening to our economy under this appalling governing NPP Party led by Nana Akufo-Addo and Dr. Bawumia.