IMF, World Bank not originally created to help Africa — Seth Terkper

Former Finance Minister, Seth Terkper

A former Finance Minister, Seth Terkper, has said global financial institutions such as the International Monetary Fund and the World Bank were not initially established to support African countries.

His remarks come amid ongoing debates on the role of international financial institutions in assisting developing economies, especially during periods of economic distress.

He explained that the origins of these institutions can be traced to the Bretton Woods Conference, where the primary objective was to rebuild economies devastated by war.

According to him, early financial support from these bodies was largely directed towards European countries affected by the war, rather than African nations.

“Let's put it this way, the institutions that we mentioned, the World Bank and IMF, that helped during the crisis, you talk about it, that's why I'm using them as examples. They were not set up to help Africa.

“I am saying that at the time they were set up, the Brenton Woods, a substantive flow went to the countries that were engaged in a war, Germany and the rest, which were devastated.

“Those are the first financing, but today they don't go to those institutions to stabilise,” he explained in an interview with Joy News.

Ghana is currently implementing an economic reform programme supported by the IMF under a multi billion dollar Extended Credit Facility arrangement aimed at restoring macroeconomic stability.

The programme, approved in 2023, was introduced in response to Ghana’s economic crisis marked by high inflation, currency depreciation, rising debt levels, and reduced investor confidence.