President Nana Akufo-Addo
President Nana Akufo-Addo has indicated that the negotiations by the government to secure an International Monetary Fund (IMF) programme, to support the implementation of the post COVID-19 programme for economic growth, are at advanced stages, and going well.
According to him, the fund-support programme will also provide additional funding to support the 2023 budget and development programme.
“For us, in Ghana, our reality is that our economy is in great difficulty. The budget drawn for the 2022 fiscal year has been thrown out of gear, disrupting our balance of payments and debt sustainability, and further exposing the structural weaknesses of our economy,” he indicated.
In a nationwide broadcast yesterday, President Akufo-Addo stated that it was not an exaggeration to say that “we are in a crisis.”
“I cannot find an example in history when so many malevolent forces have come together at the same time. But, as we have shown in other circumstances, we shall turn this crisis into an opportunity to resolve not just the short-term, urgent problems, but the long-term structural problems that have bedeviled our economy,” he averred.
He, therefore, urged Ghanaians to see the decision to go to the IMF in this light, noting that the government has gone to the Fund to repair, in the short-term, the country’s public finances, and restore the balance of payments.
He said these would be done while the government continues to work on the medium to long-term structural changes that are at the heart of the goal of constructing a resilient, robust Ghanaian economy, and building a Ghana Beyond Aid.
“We are determined to secure these arrangements quickly to bring back confidence and relief to Ghanaians. We are working towards reaching a deal with the IMF by the end of the year. This will give further credence to the measures government is taking to stabilise and grow the economy, as well as shore up our currency,” he intimated.
Cost of Living
He said he was aware of the increasing cost of living, which is being driven by fast escalating fuel prices at the pumps caused by high crude oil prices on the world market and the depreciation of the currency.
“I know that this is putting intolerable pressure on families and businesses. I know that people are being driven to make choices they should not have to make, and I know that it has led to the devaluation of capital by traders and painfully accumulated savings.
“Furthermore, the government is working to secure reliable and regular sources of affordable petroleum products for the Ghanaian market. It is expected that this arrangement, when successful, coupled with a stable currency will halt the escalation of fuel prices and bring relief to us all,” he pinned.
According to him, he has heard from the market queens also that another factor fueling the high prices is the high margins that some traders are “slapping” on goods, for fear of future higher costs.
Appeal
“I say to our traders, we are all in this together. Please, let us be measured in the margins we seek. I have great respect and admiration for the ingenuity and hard work of our traders, especially those that take on the distribution of foodstuffs around the country, and I would hesitate to join in calling them names,” he intimated.
“I do make a heartfelt appeal that we all keep an eye out for the greater good, and not try to make the utmost profits out of the current difficulties,” the President pleaded.
He explained that the basic problem that the country faces is that “we are not making as much money as we need to spend, and what little money we do make is going to pay for the debts we have contracted to fund the development projects we must have.”
“Not enough of us are paying our taxes, not enough of us are producing to generate the revenues that we need.
“Nevertheless, my ambitions for Ghana remain high. All our children should be educated and trained with skills that will enable us to be competitive in the world,” he assured.
President Akufo-Addo said the country needs to rapidly close the infrastructure gap, build a world-class healthcare system, and “we need to build confidence in ourselves to make ours the happy and prosperous place it deserves to be.”
“I believe we can and we will find the means to achieve these goals, even if the immediate measures we have to take are painful,” he expressed optimism.
By Ernest Kofi Adu