Seth Kwame Acheampong, the minister for the Eastern Region, has denied allegations that Ghana’s economy was in freefall, prompting the government to turn to the International Monetary Fund (IMF) for assistance.
On Wednesday, July 6, 2022, the Ghanaian government started talks with the IMF over a balance of payments support.
The IMF Managing Director, Miss Kristalina Georgieva, had been asked by President Akufo Addo earlier to announce the government’s intentions.
According to some economists and financial analysts, Ghana’s economy is in shambles and is on the verge of collapsing as evidenced by increased inflation of about 27%, high debt levels of almost 80% of GDP, and the country’s exclusion from the international capital market. The country’s declining foreign exchange reserves have also put pressure on the local currency, causing the cedi to depreciate quickly against major trading currencies.
While speaking to a Muslim gathering in Koforidua to mark Eid-ul-Adha, the Eastern Regional Minister asserted that Ghana is not insolvent, despite what the opposition has claimed in an effort to gain political advantage.
“During the covid pandemic, the President said we know how to bring back the economy but not the dead .So it is the same path of economic restoration that we are on now .I know many people think Ghana is broke reason we are going to IMF. No! That is not the case .Fund to run the country is available but going to IMF for more funds to enable government continue its programs and developmental projects. So it doesn’t mean Ghana is broke. This is not the first time Ghana is going to IMF. For the sake of politics people will say government has mismanaged the economy but that is not the case,” Seth Kwame Acheampong said.
According to him, the Covid-19 pandemic and Russia’s invasion of Ukraine have upset the world economy, which is why Ghana is currently facing economic difficulties.
However, the minister noted that the current economic scenario in the nation is not even close to the economic crisis Ghana endured in 1983, but with unity of purpose at that time, Ghana was successful.
Seth Kwame Acheampong urged all Ghanaians to support President Akufo Addo as he conducts economic recovery measures to ease the country’s current economic difficulties and to pray for him.