Former Deputy Finance Minister Stephen Amoah has defended the prior Akufo-Addo administration’s choice to seek assistance from the International Monetary Fund (IMF). He stated that global events, namely the COVID-19 pandemic and the Russia-Ukraine war, were the main reasons for Ghana's economic troubles. Amoah's comments come as Ghana moves from an IMF bailout program to a Policy Coordination Instrument (PCI) under the current government. This marks the end of Ghana's formal lending arrangement with the IMF this year.
Speaking on Citi FM on May 18, Dr. Amoah rejected the idea that Ghana's economic problems were solely due to bad decisions made by the previous government. He argued that before these global disruptions, the economy was stable and growing steadily. Amoah highlighted that in the first three years of the Akufo-Addo administration, Ghana's average inflation rate was around 7%. He also pointed to healthy foreign reserves and other positive economic indicators at that time. The Nhyiaeso Member of Parliament believes that the country was implementing strong social programs that benefited the poor. This was a result of good economic management, according to Amoah.
Dr. Amoah also acknowledged that Ghana's economy has long-standing underlying issues. These include a heavy reliance on imports and recurring budget problems that have affected many governments. He insisted that the previous government had already started taking steps to improve the country's finances before their term ended. The Akufo-Addo government sought a GHS 3 billion (approximately $1.5 billion) facility from the IMF in 2022. This was to help stabilize the economy amidst rising inflation and a depreciating currency. Ghana's decision to go to the IMF was driven by a need for financial support to manage its debt and restore confidence among investors.
Ghana's economic vulnerabilities are rooted in structural challenges. These have persisted across different administrations. Amoah's defense suggests a narrative that external factors played a more significant role than internal policy missteps. This argument aims to counter criticisms that the previous government's spending and management led directly to the economic crisis. The economic support from the IMF typically comes with conditions. These conditions often require the government to implement fiscal reforms and structural adjustments. The IMF program aimed to restore macroeconomic stability and promote sustainable growth.
The implications of this defense are significant for public perception of the past administration's economic stewardship. It also shapes the ongoing debate about Ghana's economic future. The current government is now tasked with building on the foundations laid during the IMF program. They must ensure long-term fiscal discipline and economic resilience. Ghanaians will be watching closely to see if the country can avoid returning to the IMF for future assistance and manage its debt effectively. The success of future economic policies will depend on addressing these deep-rooted structural issues.