Following the successful conclusion of Ghana’s $3 billion contract with the International Monetary Fund, President Nana Addo Dankwa Akufo-Addo has disclosed plans to borrow again on the global market to finance infrastructure projects.
Mr. Akufo-Addo stated during a speech at the Qatar-Africa Economic Forum in Doha that even though his administration is not in a hurry to re-enter the global market, it makes sense to benefit from it now and save some money.
“We have positioned ourselves to be able to go back into the International market which had been a source of funding for us during the first three or four years of our government,” the president said, adding, “There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme.”
The Finance Minister, Ken Ofori-Atta had earlier emphasized Ghana’s commitment to fiscal responsibility, stating that Ghana will not hastily seek to return to the international capital market for borrowing.
Speaking at a press conference on Thursday (May 18), Ofori-Atta highlighted the importance of revenue measures and prudent expenditure management in ensuring financial stability and sustainability.
He further acknowledged the revenue-enhancing measures outlined in the budget, particularly improvements at the Ghana Revenue Authority (GRA), which are expected to provide the necessary resources for the country’s progress.
“There is no rush in going back to the international capital market. Our expectation is that, by managing our expenditure and increasing our revenue, we will have the resources to address our needs.”
President Akufo-Addo also disclosed that the government will begin rigorous expenditure cuts to meet the conditionalities of the International Monetary Fund (IMF).
He said the government is eager to turn the fortunes of the country around and will do everything possible to ensure that the ailing economy is revived.
Mr Akufo-Addo expressed confidence that the IMF bailout will help revive the Ghanaian economy.
“Rationalisation of our expenditure, rationalisation of government expenditure is something that we have given the assurance. Domestic revenue mobilisation is absolutely critical for us, and already we are seeing signs.
“We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5 percent but already we are way above that and the sooner we can bring that to more acceptable levels the better for us.”
