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01.07.2022 Headlines

How do we trust ministers who said negatives about IMF to be effective under a programme? – Prof. Gatsi quizzes

By Eric Nana Yaw Kwafo
Prof. John GatsiProf. John Gatsi
01.07.2022 LISTEN

The Dean of the School of Business at the University of Cape Coast (UCC), Prof. John Gatsi has raised questions about how leaders of Ministries can be trusted now that government has eaten a humble pie and has decided to return to the International Monetary Fund (IMF) for support.

This comes on the back of the confirmation by the government that engagements have started for Ghana to seek support from the IMF.

“The President of the Republic, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister Ken Ofori-Atta to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic program put together by the Government of Ghana.

“This follows a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva, conveying Ghana's decision to engage with the Fund,” parts of a press release signed by Information Minister Kojo Oppong Nkrumah has said.

Reacting to the release, Prof. John Gatsi says government with its latest move is to obtain economic management confidence and policy credibility needed to restore the economy to an attractive path.

In his view, what is challenging about the move by the government is whether or not those who don't believe in an IMF engagement should still be leaders in key Ministries under an IMF programme.

“Those who know only negatives about an IMF programme in terms of employment how do we trust them to be effective under an IMF programme?” Prof. Gatsi asked in a release.

According to the government, its engagement with the IMF will seek to provide a balance of payment support as part of a broader effort to quicken Ghana's build back in the face of challenges induced by the Covid-19 pandemic and, recently, the Russia-Ukraine crises.

Read full statement below:

Should those who do not believe in an IMF programme be leading Key Ministries under an IMF programme?- Prof. John Gatsi

An official government communication confirmed that the President of the Republic has directed the finance minister to seek for an IMF programme. This has been work in progress since the last Article IV Consultation meeting by the IMF in which new revenue handle and Covid-19 expenditure audit were subtly assignment to pave way for an IMF engagement. Thus, e-levy was not meant to avoid an IMF programme, it was condition precedent

The main reason for the request is to obtain economic management confidence and policy credibility needed to restore the economy to an attractive path. The main challenge, however, is whether or not those who don't believe in an IMF engagement should still be leaders in key Ministries under an IMF programme?

Those who know only negatives about an IMF programme in terms of employment how do we trust them to be effective under an IMF programme?

Eric Nana Yaw Kwafo
Eric Nana Yaw Kwafo

Journalist

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