President Nana Akufo-Addo of Ghana has asserted that the recent $3 billion bailout from the International Monetary Fund (IMF) will not provide an immediate solution to the country’s economic challenges.
In a televised address to the nation, President Akufo-Addo emphasized that while the IMF bailout would restore confidence, it would take time for the country’s economy to regain stability.
During his address, President Akufo-Addo stated, “It should lead to the restoration of confidence and the reopening of avenues that have been closed to us this past year and a half. It should also lead to the resumption of many of the infrastructural projects that have stalled.”
He acknowledged that seeking assistance from the IMF was a difficult but necessary decision to help Ghana recover from the impacts of the global pandemic and Russia’s invasion of Ukraine.
However, critics argue that the country’s economic problems are partially a result of mismanagement.
Ghana currently faces one of its most severe crises in a generation, grappling with high public debt and inflation. As part of the IMF bailout agreement, the government is expected to reduce public expenditure and increase domestic revenue.
To achieve this, measures such as cracking down on tax evaders, implementing new taxes, or revising existing ones will be necessary.
The first tranche of $600 million has already been received by Ghana following the IMF’s approval of the $3 billion bailout program on May 17th.
