In a recent statement, Kweku Kwarteng, the Chairman of the Finance Committee of Parliament and Member of Parliament for Obuasi West, has underscored the urgent need for Ghana to secure financial assistance from the International Monetary Fund (IMF) and the World Bank to stabilize its economy. During an interview on PM EXPRESS BUSINESS Edition with host George Wiafe on March 14, 2024, Kwarteng highlighted the critical condition of the national economy, emphasizing the indispensability of external funding support, particularly from the IMF and the World Bank, to navigate through the current financial turmoil.
Ghana finds itself in a precarious position, unable to access the Eurobond market due to restrictions under an IMF program. This has significantly limited the country’s borrowing options, making IMF and World Bank loans essential for economic stability. Kwarteng pointed out, “Nobody is lending to Ghana now. This is because of the debt restructuring and freeze.” He further explained that the financial assistance from these international institutions would serve as a major source of foreign exchange, crucial for the country’s economic recovery.
The inability to sustain the economy through internal funding alone has led to a consensus on the need for support from the IMF and World Bank. Kwarteng stressed the importance of this support in avoiding detrimental effects on daily life, such as long queues at fuel stations and shortages of essential medicines. The advice comes at a time when Ghana is grappling with rising expenditure and revenue challenges, exacerbated by a history of budget overruns and deficits since independence.
Kwarteng acknowledged the persistent fiscal mismanagement contributing to the nation’s debt crisis and called for more stringent measures to curb budget overruns and unapproved spending. He emphasized the necessity of careful public fund management to prevent the country from slipping into a failed state scenario.
Addressing revenue collection issues, the MP underscored the collective effort needed to overhaul the current system and address shortfalls through fundamental reforms. He advocated for a review of the tax exemptions policy to eliminate discrimination and potential corruption. Kwarteng’s remarks reflect a broader call for economic discipline and strategic planning to navigate Ghana out of its current financial predicament.
The call for IMF and World Bank support is a critical step in Ghana’s quest for economic stability. It highlights the importance of international financial institutions in providing a lifeline to economies in distress. As Ghana embarks on this path, the focus on managing public funds, improving revenue collection, and implementing necessary reforms will be pivotal in ensuring the success of these financial support programs.
