Ghana’s Economic Recovery in Limbo, IMF Injuncts Capital Market Till 2027
A chartered economist Mr. Bernard Oduro Takyi (BOT) has expressed his displeasure about the International Monetary Fund’s (IMF) decision to restrict Ghana from accessing the capital market for three years, interpreting it as a lack of confidence in the economic recovery efforts claimed by President Nana Addo Dankwa Akufo-Addo and his Finance Minister.
According to Mr. BOT, this move by the IMF indicates severe mismanagement of the economy, contradicting the government’s narrative of turning the corner.
He emphasized that the IMF, as a diplomatic organization, avoids direct involvement in domestic politics but signals its concerns through measures like this.
Explaining the implications of the IMF’s decision, Mr. BOT highlighted that Ghana’s exclusion from the capital market denies the country access to long-term capital needed for infrastructural development.
Capital market funds are essential for such projects due to their long-term repayment terms, unlike the shorter-term funds from the money market.
He argued that the supposed economic recovery promoted by the President is non-existent, warning that the IMF’s injunction signifies a downward trajectory for the country’s economy.
He elaborated on these points during an interview on the Ghana Yensom Morning Show, hosted by Otafrigya Kaayire Kwesi Appea-Apreku on Accra 100.5 FM on Tuesday, May 28, 2024.
Mr. BOT reiterated that the IMF is subtly conveying the dire state of Ghana’s economy without overtly stating it, due to its diplomatic stance.
He pointed out that the inability to access the capital market underscores the country’s inability to service its existing debts, thereby halting any new borrowing for development projects for the next three years.
This restriction, he concluded, will severely limit the country’s development potential during this period.
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