President-elect, John Dramani Mahama, has affirmed his commitment to the country’s $3 billion International Monetary Fund (IMF) rescue package but signaled his intention to review its terms to curb wasteful state spending and strengthen the energy sector.
Speaking on his plans for the IMF programme, President Mahama stressed that he does not intend to abandon the deal, which has played a pivotal role in stabilizing Ghana’s economy.
“When I talk about renegotiation, I don’t mean we’re jettisoning the programme. We’re bound by it, but what we’re saying is within the programme, it should be possible to make some adjustments to suit reality,” he explained.
Focus on economic hardship
Although the IMF deal has significantly reduced inflation and revived economic growth, President Mahama emphasized the need for further efforts to alleviate economic hardship faced by Ghanaians.
“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,” he vowed.
Criticizing the “multiplicity of taxes” introduced under the programme, President Mahama described the current tax burden as detrimental to business.
He also expressed dissatisfaction with the IMF’s oversight, arguing that it had not adequately pressured the government to eliminate wasteful expenditures.
“If the president is asking us to tighten our belt, he must also tighten his,” President Mahama said, promising to target spending cuts, including reducing expenditures from the presidency.
Early review and debt restructuring
President Mahama revealed that the IMF has agreed to an early mission to conduct a regular review of the programme.
These discussions, he said, would center on refining the ongoing debt restructuring process, which is nearing completion, and identifying practical steps to ease the strain on businesses and households.
Energy sector overhaul
A key aspect of President Mahama’s planned revisions to the IMF deal involves addressing the country’s persistent energy challenges.
He highlighted the Electricity Company of Ghana (ECG) as a critical weak link in the energy value chain, calling for urgent reforms to prevent recurring power outages.
“We’re going to face quite a critical situation in the energy sector. ECG is the ‘sick man’ of the whole value chain, and we need to quickly fix it,” President Mahama said, signaling his intention to implement sustainable solutions for the sector.
Path forward
President Mahama’s comments underscore his determination to navigate Ghana’s economic recovery while addressing systemic inefficiencies and ensuring fiscal discipline.
As he prepares to assume office, his pledge to revise the IMF deal reflects his broader vision to foster economic stability, business growth, and energy sustainability for the benefit of all Ghanaians.
