There’s no rush to go back to the international capital market – Ofori-Atta
Finance Chief Ken Ofori-Atta has expressed that the Government of Ghana is in no hurry to return to the capital market, despite the approval of the $3 billion support program by the IMF Board. While acknowledging the importance of accessing the capital market and its attendant benefit of improving a country’s credit ratings and attracting investors interest, Ofori-Atta stated that it is not the government’s current plan to do so.
During a joint press conference with IMF Mission Chief to Ghana, Stephane Roudet, on May 18, 2023, Ofori-Atta emphasized the government’s focus on increasing domestic revenue mobilization and controlling expenditure. He stated, “There is no rush to go back to the capital market; our expectations are that we increase our revenues and control our expenditure.”
Ghana’s access to the international capital market was curtailed after the country defaulted on its debt obligations to market creditors. Currently, the country is engaged in negotiations with external creditors as part of its external debt restructuring program, which involves billions of dollars. Encouragingly, external creditors have demonstrated their commitment to supporting Ghana in this restructuring endeavor.
Building on the commitment displayed by external creditors towards the external debt restructuring program, the IMF approved a $3 billion financing support program for Ghana on May 17, 2023. This support from the IMF marks a significant step forward for Ghana, enabling the country to strengthen its economic foundations and implement vital reforms.
While the IMF program provides a financial lifeline, the government recognizes the importance of self-sufficiency and fiscal prudence. By focusing on increasing revenue generation and managing expenditure, Ghana aims to regain stability and reduce reliance on external sources of funding. This approach aligns with the government’s long-term vision of promoting sustainable economic growth and achieving financial independence.
As Ghana works diligently towards improving its domestic revenue streams and implementing fiscal discipline, the nation’s determination to regain its standing in the international capital market remains steadfast. The government’s prudent fiscal management, coupled with ongoing negotiations with external creditors, sets the stage for a potential future return to the capital market.
The approval of the IMF financing support program signifies a vote of confidence in Ghana’s commitment to implementing necessary reforms and addressing its economic challenges. It is a testament to the country’s dedication to restructuring its external debt and securing a sustainable financial future.
Moving forward, Ghana must remain resolute in its pursuit of economic stability and utilize the IMF support program as a catalyst for comprehensive reforms. By leveraging this opportunity effectively, Ghana can reestablish its credibility, attract investment, and foster an environment conducive to long-term growth and prosperity.
While the government of Ghana recognizes the value of the capital market, it currently prioritizes revenue mobilization and expenditure control. The approval of the IMF financing support program signifies a crucial step forward for Ghana’s economic revitalization. By staying committed to its reform agenda and diligently managing its financial affairs, Ghana is charting a course towards a brighter and more prosperous future.
