IMF: ‘Ghana’s Current Economic Challenges Are Not Locally Generated’ | Economy

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has stated that Ghana’s current economic challenges are the result of external shocks, not domestic policy. 

Speaking at the Africa Adaptation Summit in the Netherlands earlier this month, Georgieva said the following:

“To the people of Ghana, like everybody on this planet, you have been hurt by exogenous (external) shocks.

“First the pandemic, then Russia’s war in Ukraine. We need to realise that it is not because of bad policies in the country but because of this combination of shocks, and therefore we have to support Ghana.” Georgieva said.

Discussing Ghana’s ongoing talks with the IMF, Georgieva highlighted that the Fund had ‘started very constructive discussions’, noting that she would support Ghana “because your (Ghana’s) strength contributes to the strength of your neighbours; it contributes to a stronger world”.

In the face of the pandemic and the war in Ukraine, as stressed by Georgieva, Ghana proactively entered talks with the IMF for a $3 billion loan.

The loan will be used to stabilise the economy in the face of global economic turbulence, supporting the cedi and helping to reduce the price of food and fuel. 

In the past month, the IMF has provided loans to both Pakistan and Sri Lanka, showing the global nature of current economic challenges. 

 President Akufo-Addo and Vice President Bawumia have stressed that an IMF loan will serve to help Ghana’s economy in the short-term, building a foundation for long-term resilience and prosperity. 

Meanwhile, the IMF resident representative in Ghana, Dr Albert Touna Mama, said Ghana has dealt well with those external shocks and expressed confidence that it can deal with these ones too.

“This country has known a lot of shocks and we have navigated those together. There is no reason it cannot navigate the current ones,” Dr Mama said.