The President of Ghana, Nana Addo Dankwah Akufo-Addo remains optimistic about securing a deal with the International Monetary Fund (IMF) by the end of the year 2022.
As per the President of Ghana’s address to the nation on Sunday,October 30 ,2022, he stated that, “We are working towards securing a deal with the IMF by the end of the year. This will give credence to the measure’s government is taking to stabilize and grow the economy, as well as shore up our currency”.
The country is targeting a 3 billion dollars bailout amount, if an agreement can be reached.
However, with all hopes on the IMF deal, Ghana must have an alternative plan should things not go as planned. In an interview with a media house on Tuesday, November 1,2022, An Economist Professor Elikplim Komla Agbloyor from the University of Ghana Business School (UGBS) advised that the government needs to have a backup plan in place if the IMF arrangement does not work out.
Making a inference to Egypt where they still went on to sollicite for support from the Gulf nations to buttress their foreign exchange transactions, even after securing an IMF agreement a week ago on Thursday October 27,2022, professor Agbloyor propounded the government to make plans for other options.
He also ascertained that even though support may come from the IMF, it may not to be enough , hence the need for an alterative economic plan . “However, what I was expecting the President to do is, we should have a plan B. For example, in case there is a delay in securing a deal with the IMF or in case the deal does not even go through which is a possibility, do we have a plan B? I am saying this because the IMF in itself will help but I don’t think it is sufficient.”
Professor Agbloyor further suggested that aside the deal with the IMF, “the government should be making plans for other options to increase our foreign exchange reserve especially in the short term”.
-Economist
Author –Roberta Appiah
