IMF Board approval to unlock new financing channels – Prof Osei-Assibey
Ghana is poised to unlock a multitude of financing channels and pipelines for its economy following its anticipated securing of an International Monetary Fund (IMF) bailout programme in March this year, according to Associate Professor Eric Osei-Assibey of the University of Ghana.
Speaking at the 2023 Ghana Economic Outlook Forum, organized by the American Chamber of Commerce in Ghana on Tuesday, February 21, 2023, Professor Osei-Assibey stated that the expected inflows will strengthen the country’s Central Bank and provide ample resources to build up reserves to support the Ghanaian cedi.
The optimism of Professor Osei-Assibey towards Ghana’s economic outlook is grounded in the fundamental principle of IMF bailout programmes, which is to provide support to countries with macroeconomic imbalances, while simultaneously unlocking financial channels and pipelines to enable economic growth.
The IMF bailout programme for Ghana is expected to have a significant impact on the country’s economy, particularly with respect to the Central Bank’s ability to build up reserves, which would provide the necessary support to strengthen the cedi.
This would also have a knock-on effect on Ghana’s economic growth, as it would enable the country to attract more investment, both domestically and internationally.
The potential for increased inflows and investment could potentially provide Ghana with the means to address some of its pressing economic challenges, such as its food crisis and supply chain issues. This would, in turn, address the key drivers of inflation in the country, which have been primarily driven by food inflation.
The expected inflows from the IMF programme could help to ramp up production in the value chain supply, thereby reducing food prices and bringing down inflation rates.
The stability of Ghana’s currency is also a significant factor that could impact the country’s economic growth prospects, as any further depreciation could have an adverse effect on inflation.
Securing the IMF programme would enable Ghana to address its pressing economic challenges.
