Alan Kyerematen, the minister of trade and industry, has pledged that the government will work tirelessly to restart Ghana’s economy as it seeks assistance from the International Monetary Fund (IMF).
In the Good Evening Ghana (GEG) program on Metro TV, Mr. Kyerematen explained how the government’s economic recovery programs throughout the COVID and COVID-19 eras were succeeding until unstoppable external forces sent the economy into a tailspin.
The Trade and Industry Minister referred to the contributing circumstances as a “force majeure,” but said there was sufficient justification to believe that the government’s leadership could successfully complete the most recent bailout because of the strong economic development between 2017 and 2019.
According to Mr. Kyerematen, the causes that led the current government and the former NDC to the IMF were entirely different, and the government’s already-presented plans will ease the burden on Ghanaians.\
The minister claimed that the IMF was set up to help member nations that required financial or technical assistance get back on their feet.
The minister stated, “There is a need to debate this matter (Ghana’s negotiations with the IMF) dispassionately and with true facts,” in his opening statement on the program.
He also emphasized the economy’s tangential growth, which included bolstering reserves at the central bank, containing inflation, bringing down debt to levels that could be sustained, and producing a trade surplus that led to more exports than imports in the first 18 months of the government.
The Trade and Industry Minister blamed external influences for the abrupt crushing of the economy, which he said as recently as May 2021 was exhibiting signs of upward development and resilience. This was done to confirm the causes of the sudden collapse in the economy.
Mr. Kyerematen mentioned the consequences of COVID-19 and the Russian invasion of Ukraine and its effects on economies around the world while discussing the primary reason for Ghana’s readmission to the IMF.
He described Ghana’s exogenous slow economic growth while outlining the government’s deliberate measures to slow it down.
The Trade and Industry Minister gave Ghanaians optimism with a comprehensive economic transformation plan driven by industrial and agricultural emancipation as over 100 countries sought bailouts from the IMF.
He also spoke of some of the government’s signature initiatives targeted at boosting the industrial environment, saying the Akufo-Addo-led New Patriotic Party (NPP) administration was certain Ghana will easily navigate the IMF program.
The minister mentioned cutting-edge initiatives like the One District One Factory (1D1F), noting that 125 businesses were already up and running and 296 were in various stages of completion.
He also implied that both the NDC and the NPP required the IMF at different times to manage the economy, but claimed that the NDC went to the IMF as a result of a systematic fall in economic indicators, but the incumbent was brought before the donor body as a result of external causes.
Ghana has already begun the process of obtaining a US$2 billion loan from the IMF to help fulfill the Economic Management Team’s plan for economic resuscitation (EMT).
What happened during the government’s engagement with the IMF team in Accra from Wednesday to Friday has not yet been made public by the government.
President Akufo-Addo will head the Ghanaian team in the negotiations, with Carlo Sdralevich, the IMF mission director for Ghana, also leading his team, according to Kojo Oppong Nkrumah, the information minister, who made the announcement last week.