Ghana eyes extra IMF support as new government tackles economic crisis

Ghana’s incoming finance minister, Cassiel Ato Forson, has signalled plans to seek additional funding from the International Monetary Fund (IMF) to stabilize the struggling economy.

Speaking on Thursday ahead of a meeting with an IMF delegation in Accra, Forson stressed the importance of working with both domestic and international partners to secure much-needed financing.

"The reliance on Treasury bills and others has not been very helpful," said Forson, a seasoned economist and former deputy finance minister. He also vowed to cut public spending and reduce waste, aiming to curb inflation and restart domestic bond issuance by mid-year.

The West African nation, known for gold and cocoa production, defaulted on most of its external debt in 2022, prompting a difficult restructuring process that is nearing completion. Forson added that the government will finalize deals with non-Eurobond commercial creditors to conclude the debt restructuring.

President John Dramani Mahama, sworn in earlier this week after his December election victory, has pledged to revamp Ghana’s economy by creating jobs and restoring public trust. Key appointments to his cabinet include John Abdulai Jinapor as energy minister and Dominic Akuritinga Ayine as attorney general.

Forson emphasized the urgent need to overhaul Ghana’s cocoa sector, addressing funding gaps and production challenges. Parliament, where Mahama’s National Democratic Congress holds a majority, must now approve his ministerial nominees.

The Mahama administration inherits an economy reeling from its worst crisis in a generation, with international markets closely watching its next moves.