Ghana’s newly sworn-in government, led by President John Dramani Mahama, may seek additional financing from the International Monetary Fund (IMF) during its ongoing three-year program to stabilize the nation’s struggling economy, according to finance minister-designate Cassiel Ato Forson.
Speaking to reporters on Thursday ahead of a meeting with an IMF delegation in Accra, Forson emphasized the administration’s intent to secure supplementary funding in collaboration with both domestic and international partners.
“We are committed to working with the IMF, but we also want to ensure that we can raise additional financing through collaboration with the IMF and other stakeholders,” Forson stated. He expressed concern about the government’s heavy reliance on Treasury bills, describing the approach as ineffective.
Forson, a 46-year-old chartered accountant with advanced degrees in taxation and finance, pledged to implement fiscal reforms aimed at curbing inflation and reducing public spending. “There is a lot of waste in the system, and we will cut it,” he said, noting that such measures would also facilitate the resumption of domestic bond issuance by mid-2025.
Tackling Debt and Economic Recovery
Ghana, a major gold and cocoa producer, defaulted on most of its external debt in 2022, triggering a challenging debt restructuring process. Forson revealed that the new administration plans to conclude this process by finalizing agreements with non-Eurobond commercial creditors.
During his campaign, President Mahama vowed to renegotiate Ghana’s IMF bailout terms, a move that garnered attention but left limited room for maneuvering within the existing agreement. Market analysts have suggested that Mahama’s administration is unlikely to abandon the program despite its earlier rhetoric.
Forson’s commitment to austerity measures and cooperation with the IMF echoes similar strategies employed by reformist governments in other emerging markets, such as Sri Lanka, where debt restructuring and IMF programs have been critical to economic recovery.
The new government faces mounting pressure to rebuild confidence in Ghana’s economy and stabilize key financial indicators, including inflation and debt sustainability.