Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs (IEA), has advised President-elect John Dramani Mahama to review Ghana’s ongoing programme with the International Monetary Fund (IMF) to boost investor confidence in the cedi and the broader economy.
In a recent post on his X page, Dr. Kwakye emphasized the importance of a review of the IMF programme for the country’s fiscal stability. He also proposed the establishment of an Economic Advisory Council (EAC), composed of independent professionals, to provide critical guidance on economic matters during Mahama’s second term. “To strengthen investor confidence in the cedi and economy, President Mahama should constitute a team to review the IMF program,” Dr. Kwakye wrote. “Pres Mahama should also constitute an Economic Advisory Council (EAC) of independent professionals to advise him on the economy.”
Dr. Kwakye’s call comes despite recent statements from the IMF, which indicated that Ghana has made progress in strengthening its fiscal position ahead of the December 7 general elections. In its report, the IMF noted that continuing fiscal policy adjustments and creating space for social programs are crucial for maintaining a sustainable fiscal path. It also emphasized the importance of reducing financing needs while cushioning vulnerable populations from the impact of fiscal changes.
The IMF stressed the importance of increasing domestic revenue mobilization, enhancing tax administration, and controlling primary expenditure to improve the country’s fiscal health. The international body also underscored the need for Ghana to address challenges in the energy sector and finalize its comprehensive debt restructuring, building on the recent Eurobond exchange.
“The authorities should also maintain a prudent monetary policy stance and enhance exchange rate flexibility to safeguard Ghana’s economic resilience,” the IMF stated after completing the third review of Ghana’s 36-month Extended Credit Facility (ECF) on December 2, which paved the way for the immediate disbursement of SDR 269.1 million (approximately US$360 million).
Dr. Kwakye’s suggestion for a broader review reflects concerns over the sustainability of Ghana’s fiscal policies, urging President Mahama to act decisively to ensure long-term economic stability and investor confidence in his administration.
