“We are exiting the IMF programme with dignity, not as supplicants, but as partners” – President Mahama

Ghana aims to decrease its dependence on foreign financial aid, as the government prioritizes regaining economic stability and public trust following years of sluggish growth, elevated inflation, and increasing debt.

Since 2023, the country has been participating in an IMF-supported programme aimed at stabilising the economy following a rise in inflation, a decline in the cedi, and a depletion of fiscal buffers.

Officials state that Ghana pursued IMF assistance for three primary reasons: to stabilize the economy following global disruptions, to obtain balance-of-payments aid, including concessional financing, and to facilitate further international funding through a catalytic impact.

In his New Year address, President John Dramani Mahama stated that the government is getting ready to leave the IMF program while protecting Ghana’s economic reputation. He stated that the reforms implemented during the previous year have bolstered macroeconomic indicators adequately to facilitate a gradual withdrawal.

“We are beginning the process of exiting the IMF programme with dignity, not as supplicants, but as partners.”

Ghana’s participation in the IMF program came after rising debt and inflation diminished investor trust. Although the program contributed to some stability, it also ignited discussion regarding economic sovereignty and the lasting effects of external conditions.

President Mahama stated that Ghana has finalized debt renegotiations “on terms that protect our sovereignty while ensuring sustainability” and is restoring trust with global partners.

He mentioned that inflation had decreased from “23% and higher by the end of 2024,” the cedi experienced “relative currency stability,” and business confidence was on the rise — factors the government claims establish the groundwork for a dignified exit.

Source: Ghanatodayonline.com