Mahama Pledges to Keep Ghana in IMF Deal, But Seeks Revisions to Tackle Economic Challenges

Ghana’s President-elect, John Dramani Mahama, has confirmed that his administration will not abandon the country’s $3 billion deal with the International Monetary Fund (IMF), but he intends to seek crucial adjustments to the agreement to better address Ghana’s pressing economic challenges.

Mahama, who won the December 7 election with a decisive 56.55% of the vote, emphasized that while the IMF deal has helped stabilize the economy, there is still work to be done to alleviate the hardships faced by Ghanaians.

In an interview with Reuters on Friday, Mahama expressed his commitment to keeping Ghana within the IMF program but stressed the need for a review to focus on reducing wasteful government spending, addressing inflation, and tackling currency depreciation.

“When I talk about renegotiation, I don’t mean we’re jettisoning the programme. We’re bound by it, but what we’re saying is that within the programme, it should be possible to make some adjustments to suit reality,” Mahama explained.

The country is currently recovering from one of its worst economic crises in decades, with significant challenges in key sectors like cocoa and gold, both vital to Ghana’s economy.

Although the IMF-backed measures have helped reduce inflation and return the economy to modest growth, Mahama believes that more targeted actions are needed to ease the cost-of-living crisis for ordinary Ghanaians.

He criticized the IMF’s current approach, particularly the numerous taxes introduced under the agreement, which he believes have created an unfriendly business environment.

Mahama also called for a more aggressive stance on cutting government waste, including the excessive spending at the president’s office.

“If the president is asking us to tighten our belt, he must also tighten his,” he remarked.

A key area of focus for Mahama’s revised plan is the energy sector. He highlighted the Electricity Company of Ghana as a major concern, referring to it as the “sick man” of the national energy value chain.

Mahama’s administration will aim to tackle ongoing power shortages and seek sustainable solutions to ensure a reliable electricity supply for the country.

As Mahama prepares to take office, he has made it clear that improving the lives of Ghanaians will be at the forefront of his agenda, with a focus on implementing a more effective and sustainable economic plan.