Government must uses IMF to resuscitate Ghana’s economy

Ghanaians said here Thursday they expect the government to put the International Monetary Fund (IMF) loan granted to Ghana to good use.

The comments came on the heels of the approval of a 3-billion-U.S. dollar Extended Credit Facility Wednesday to help Ghana revive its economy.

Frederick Gbadasu, 54, a businessman in the port city Tema, commended China and the Paris Club for giving the country financial assurances, which helped facilitate the approval of the credit facility.

He, however, stressed the need for the government to ensure the funds are applied prudently to restore macroeconomic stability. “It is important the government ensures the money is injected into areas that will help in our economic recovery process.”

Isaac Antwi, a 38-year-old importer in Tema, urged the government to use the credit facility to stabilize the country’s local currency in order to promote trade and commerce.

“The long-time decline of the local currency against its trading partners, especially the U.S. dollar, really affected us as importers. One thing I will like the government to focus on with this IMF support is to work on our currency so that it can be strong again,” said Antwi. “When the currency is strong against its trading partners, it will help reduce the cost of doing business. This will pave the way for creating more jobs in the country.”

Godfred Bokpin, a professor of economics at the University of Ghana, told local media that Ghana needs strict governance and productivity-enhancing reforms to complement gains from the IMF.

According to a statement issued by the IMF Wednesday, the Ghanaian government’s reform program would focus on restoring macroeconomic stability and debt sustainability while implementing wide-ranging reforms to build resilience and lay the foundation for more robust and inclusive growth.

Facing soaring inflation and currency depreciation, the Ghanaian government began negotiations with the IMF in July last year for a bailout package. Enditem