Former President John Mahama is urging the government to exercise caution in using the recently approved $600 million IMF bailout to ease the economic challenges faced by Ghanaians.
The disbursement, which the IMF Executive Board approved on January 19, 2024, comes after Ghana’s successful completion of the 2023 Article IV consultation and the first review of the 36-month Extended Credit Facility arrangement.
Mahama expressed concern about the persistent hardships faced by Ghanaians and emphasized that the Akufo-Addo-led administration must ensure that the funds are used judiciously to bring relief to the suffering citizens.
Despite releasing the first tranche last year, Mahama contends that Ghanaians continue to endure difficulties.
According to Mahama, under normal circumstances, the release of $600 million by the International Monetary Fund (IMF) to the government of Ghana should provide relief to the already overburdened and suffering citizens.
However, Ghanaians will continue to suffer as long as the Akufo-Addo-Bawumia and NPP remain in office, he wrote in a Facebook post.
Mr Mahama, in a social media post, expressed concern about the potential impact of the incoming Value-Added Tax (VAT) on electricity consumption.
He warned that it could increase tariffs, resulting in higher prices for goods, services and transport fares.
He argued that implementing VAT on electricity consumption could raise tariffs by almost 21% and exacerbate the hardship on Ghanaians.
He agreed with organized labour that the government should reverse its decision to start collecting VAT on electricity consumption.
While acknowledging that the NDC is ready to address Ghana’s economic challenges and provide relief upon assuming office in January 2025, Mr Mahama stressed the importance of responsible and cautious handling of the IMF funds.
He further encouraged the NDC minority in parliament to exercise strict oversight and scrutinize the government’s actions.
“I have already encouraged the NDC minority in parliament to ensure strict oversight on both the government and not to take their eyes off the Bank of Ghana that illegally printed billions of cedis and aggravated our economic situation,” he said.
