New Government Seeks Additional IMF Support to Tackle Economic Crisis

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Ghana’s newly appointed finance minister, Cassiel Ato Forson, has announced plans to pursue additional financial support from the International Monetary Fund (IMF) to help stabilize the country’s struggling economy.

In remarks ahead of a meeting with an IMF delegation in Accra on Thursday, Forson highlighted the need for collaboration with both domestic and international stakeholders to secure vital funding.

“The heavy reliance on Treasury bills and similar instruments has not yielded positive results,” said Forson, an experienced economist and former deputy finance minister. He pledged to cut public spending, reduce inefficiencies, and control inflation, with a goal to resume domestic bond issuance by mid-year.

Ghana, a leading gold and cocoa producer, defaulted on most of its external debt in 2022, triggering a complex restructuring process that is nearing completion. Forson noted that the government is finalizing agreements with non-Eurobond commercial creditors as part of the effort.

President John Dramani Mahama, inaugurated earlier this week following his December election victory, has vowed to revive the economy, create jobs, and rebuild public trust. His cabinet includes John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general, among other key appointments awaiting parliamentary approval.

Forson also underscored the urgency of reforming Ghana’s cocoa sector, addressing funding shortfalls and production issues.

The Mahama administration faces the challenge of navigating the nation’s worst economic crisis in decades, with international markets closely monitoring its policy actions.

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