Ghana's continued reliance on International Monetary Fund (IMF) programmes is hindering its economic development, according to Dr. Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress Ghana. He stated that these programmes do not adequately support the country's production capacity and long-term economic growth. Dr. Otoo voiced these concerns on the television programme Newsfile on Saturday, May 16.
He explained that Ghana remains an import-driven economy. This leads to high youth unemployment even when macroeconomic stability, or the balance of the country's economy, is achieved. Dr. Otoo highlighted that many young people struggle to find jobs for years after finishing school.
The union leader criticised the government's interest in private sector participation in the Electricity Company of Ghana (ECG). He believes this is an attempt to complete a privatisation agenda that was previously unsuccessful. Dr. Otoo stressed that unions are prepared to resist any attempts to privatise ECG. He pointed to ECG's financial performance, noting collections rose from approximately GHS 900 million at the end of 2024 to GHS 2.1 billion currently, showing clear progress without private intervention.
Dr. Otoo dismisses the idea that ECG needs privatisation, calling the push ideological. He argued that rising gold prices, not IMF policies, have largely propped up Ghana's economy. He questioned where the economy would be without these gold price increases. Dr. Otoo called for a fundamental shift in Ghana's economic strategy. This shift should focus on protectionist policies, industrialisation, and the creation of decent employment opportunities.
He asserted that macroeconomic stability must translate into social stability for Ghanaians. This requires a new approach to economic policy making. The current approach, he contends, leaves too many citizens behind. The government's stated commitment to private sector partnership in ECG and its ongoing engagement with the IMF are key policy actions he scrutinised.
This criticism comes at a time when Ghana is seeking a new 3-year programme from the IMF. The government has also committed to fully recapitalising the Bank of Ghana by 2032, another significant fiscal undertaking. The effectiveness of IMF programmes in fostering sustainable local industries and job creation remains a central debate in Ghana's economic discourse.