Ghana president-elect John Mahama set to look into $3 billion IMF loan

The president-elect noted that while he wants to review the $3 billion IMF loan, he has no plans to do away with the loan.

John Mahama had previously announced that he would renegotiate the IMF agreement that the departing President Nana Akufo’s administration had acquired.

“When I talk about renegotiation, I don’t mean we’re jettisoning the program,” Mahama said.

“We’re bound by it but what we’re saying is within the program, it should be possible to make some adjustments to suit reality,” he added.

Inflation was cut in half and the economy resumed growing owing to the IMF deal, although Mahama stated that more effort was required to alleviate the country’s financial crisis.

“The economic situation is dire … and I’m going to put my soul, physique and everything into it and focus on making lives better for Ghanaians,” said Mahama.

The president-elect claimed that Ghana was “unpleasant for business” due to the “multiplicity of taxes” agreed upon as part of the IMF program.

“We also think that (the IMF) have not put enough pressure on the government to cut wasteful expenditures,” he said.

“If the president is asking us to tighten our belt, he must also tighten his,” he added.

In an exclusive with Reuters, John Mahama said that he would also aim to address inflation and currency devaluation in order to alleviate West Africa’s cost-of-living issue.

A recent report revealed that Ghana’s economy saw its fastest growth since 2019, following a period of significant economic downturn in the previous years.

The country’s Gross Domestic Product increased by 7.2% in the three months leading up to September compared to the same time last year.

Government Statistician Samuel Kobina gave this information to reporters in Ghana’s capital, Accra, at a press event on Wednesday.

The International Monetary Fund’s executive board approved a $3 billion, three-year loan proposal for Ghana on May 17.

This offered a way out of the worst economic crisis the country has experienced in a generation and allowed for the immediate payment of almost $600 million.

This timely payment of $600 million follows Ghana’s efforts to get a $3 billion IMF loan, which it has been attempting to do since 2022.