GHANA’S freshly appointed finance minister, Mohammed Amin Adam, has committed to upholding the nation’s $3bn IMF programme while navigating critical debt restructuring endeavours ahead of December’s elections. President Nana Akufo-Addo’s cabinet reshuffle saw the replacement of Ken Ofori-Atta with Adam, a seasoned petroleum economist, amidst scrutiny over leadership during Ghana’s severe economic downturn.
Ofori-Atta, the former finance minister, spearheaded negotiations for the IMF bailout loan to tackle the economic crisis, characterised by soaring inflation and escalating debt servicing costs in 2022. His removal, alongside Adam, occurred amid efforts to seek relief on approximately $13bn owed to private bondholders.
In a recent telephone interview, Adam assured stakeholders of seamless debt negotiations continuity, emphasising his prior involvement in the process: ‘There will not be any delays in the ongoing debt negotiations with bondholders because I have been part of the process. The advisers remain the same and the targets have not changed.’
Amid concerns of electoral influence on fiscal policies, Adam vehemently dismissed speculations of fiscal relaxation to bolster the ruling party’s electoral prospects. He affirmed commitment to the IMF programme’s fiscal consolidation, with a focus on aggressive revenue mobilisation and streamlined spending to directly benefit Ghanaians: ‘There will be no reversal on the IMF programme of fiscal consolidation. Revenue mobilisation will be aggressive, backed by new reforms at the Ghana Revenue Authority.’
Expressing support for structural reforms under the IMF programme, Adam received backing from the IMF itself. He stated, ‘I am a pro-reform person and therefore strongly support the structural benchmarks under the IMF programme.’
Additionally, the World Bank’s approval of $300 million for Ghana, alongside a loan restructuring agreement of $5.4bn with official creditors, signals progress in the nation’s economic revival efforts.
Furthermore, Ghana anticipates the initiation of negotiations for the next disbursement of a $900 million Development Policy Operation loan from the World Bank, as confirmed by Adam in a recent radio interview: ‘Negotiations for the next disbursement are about to start.’
Mohammed Amin Adam’s appointment as Ghana’s finance minister signifies a renewed commitment to navigating economic challenges while upholding international obligations. His assurances of continuity and adherence to fiscal discipline amid debt restructuring efforts offer a glimpse of optimism for Ghana’s economic future ahead of the impending elections.