The president of Ghana wants to reassure people about the economic “crisis”
As his government negotiates a loan deal with the International Monetary Fund, Ghana’s President Nana Akufo-Addo has made an effort to convince the population that his administration can handle an economic “crisis.”
Akufo-Addo on Sunday night issued a broadcast speech pleading with Ghanaians to accept his decision to flip his stance and seek an IMF loan. He was under pressure from his own legislators to oust his finance minister.
Ghana is looking for a $3 billion loan as the nation deals with 35 percent inflation, a steep decline in the cedi currency, and hefty debt service costs after being severely affected by the worldwide pandemic and the effects of the conflict in Ukraine.
I do not exaggerate when I say that we are in a crisis, he stated in his remarks. I urge us all to consider this while evaluating the choice to approach the International Monetary Fund. We went to the fund to make short-term repairs to our public finances.
Akufo-Addo said that they anticipated reaching an agreement by the end of the year. The IMF has begun negotiations with Ghana over a settlement.
This will support the actions the administration is doing to strengthen our currency and stabilize the economy even further.
The president said that the IMF agreement would not include any alleged “hair-cuts” to reduce the amount of the nation’s debt, which would result in financial loss for bondholders.
In an effort to lessen dependence on the suddenly more expensive imported items, he said that the government will examine import regulations and encourage farmers.
In order to strengthen the cedi, the president also promised to step up efforts to “establish order” on the foreign currency markets, such as by cracking down on unauthorized traders.
“I am aware that this is placing families and companies under unacceptable stress. Regarding the economic crisis, the president added, “I realize that people are being pressured to make decisions that they shouldn’t have to.”
Last week, MPs from Ghana’s governing party urged that Akufo-Addo dismiss his finance minister and another key ministry employee, putting more pressure on his administration due to the nation’s economic difficulties.
Earlier this month, unionized merchants and dealers in Accra’s capital shut down their operations for three days in a protest over growing living expenses.
