Ken Ofori-Atta
Finance Minister, Ken Ofori Atta has hinted of significant economic reforms as the country begins implementation of its International Monetary Fund (IMF) Post COVID-19 Programme for Economic Growth (PC-PEG).
Mr. Ofori Atta addressing the media in Accra on Sunday June 18, 2023, said in the medium term, the PC-PEG backed IMF programme seeks to undertake reforms especially in expenditure control, non-arrears accumulation, revenue growth, ECG collections and Energy Sector reforms
“Over the medium term, the PC-PEG backed IMF programme seeks to promote a credible fiscal consolidation programme, anchored by strong domestic revenue mobilisation and high spending efficiency. The Government is targeting a primary surplus on a commitment basis—the critical fiscal anchor under the program of 1.5% of GDP by 2025 through to 2028; firmly anchor inflation expectations and preserve financial stability; restore public debt to sustainable levels by 2028 by observing the two binding constraints of Public Debt (in present value terms) to GDP ratio of 55% or less; and An External a Debt Service to Revenue ratio of 18% or less, enhance economic competitiveness, with exports surpassing 37 per cent of GDP,” he said.
He called on all to remain committed to the agreed wide-ranging and strong structural reforms designed to address structural weaknesses and build resilience in key areas including tax policy and tax administration, expenditure commitment control and arrears clearance, financial stability, financial sector plans, review of statutory funds, governance and corruption, debt management, fiscal credibility, and energy sector/cocoa sector SOEs reformation.
Global Community Engagement
The Finance Minister also affirmed the commitment of his ministry to collaborate with partner countries in order to effectively implement the necessary reforms and achieve the goals outlined in the International Monetary Fund (IMF) programme.
Mr. Ofori-Atta highlighted the progress made thus far in implementing the reforms and shared plans for the future.
During his recent trips to South Africa and South Korea following the approval of the bailout, Mr Ofori-Atta says he engaged in private-sector discussions focused on agriculture and technology.
These engagements were aimed at fostering a more intentional and vigorous growth agenda, as well as building strategic partnerships to support Ghana’s economic turnaround.
The IMF has provided Ghana with a $3 billion extended credit facility as part of the bailout programme.
This financial support will play a crucial role in bolstering Ghana’s economic stability and creating an enabling environment for sustainable growth.
Ofori-Atta emphasised the importance of continuous engagement with the global community to garner support for Ghana’s growth initiatives.
“As you know, I was in South Africa, South Korea and South Africa immediately after I remember approval to draw my private sector engagements in agriculture and technology in particular, pursue a more deliberate and aggressive growth agenda or continue to engage the global community to support our growth program for growth and economic turnaround,” he said on Sunday, June 18.
The Minister, however, expressed confidence in their ability to execute the necessary reforms and achieve the desired outcomes.
The ministry says it remains committed to driving economic growth, improving fiscal discipline, and ensuring the efficient utilization of resources to benefit the Ghanaian people.
By Jamila Akweley Okertchiri