Ghana’s Economy is in Safe Hands – Afenyo-Markin Challenges Mahama to a Debate
The Majority Leader, Alexander Afenyo-Markin, has asserted that Ghana’s economy is under competent management.
Speaking on the floor of Parliament following the mid-year budget presentation by Finance Minister Dr. Mohammed Amin Adam on Tuesday, July 23, Afenyo-Markin declared, “The economy is in the hands of those who have the power to bring back the economy.”
He called on the Minority to make fair comments in Parliament and challenged the National Democratic Congress (NDC) flagbearer, John Dramani Mahama, to a presidential debate.
The Debate Challenge
After the parliamentary session, Afenyo-Markin spoke to journalists, daring John Mahama to accept a debate challenge from the New Patriotic Party (NPP) flagbearer, Dr. Mahamudu Bawumia ahead of the December polls.
However, the 2024 Mahama Campaign Team declined, arguing there was nothing left to debate about the economy and that Mahama did not need a debate to convey his message.
Afenyo-Markin insisted that Mahama must accept the debate, emphasizing, “We’re calling on Mahama to accept the invitation by Dr. Bawumia for a debate. We don’t want politics of insults, name-calling, insinuations and all. If indeed he’s determined to come back and wants to tell Ghanaians that he’s a changed man, I’m calling on him to stand shoulder-to-shoulder with Dr. Bawumia and debate on the issues. Dr. Bawumia is ready to put the cards on the table. If he says we have not performed as a government, it’s only through a debate that he can put a point across.”
Economic Performance and Debt Management
During the mid-year budget presentation, Finance Minister Dr. Mohammed Amin Adam provided updates on Ghana’s economic status. The provisional total debt stock stood at GH¢742 billion (US$50.9 billion) as of June 2024, representing 70.6 percent of the Gross Domestic Product (GDP). This debt comprised external debt of GH¢452.0 billion and domestic debt of GH¢290.0 billion, representing 60.9 percent and 39.1 percent of the total debt stock, respectively. The increase in debt was attributed to the depreciation of the cedi and continuous disbursements from creditors.
Dr. Amin Adam reassured Ghanaians that the government is living within its budget. He stated, “In effect, Mr. Speaker, we are living within our means. Indeed, consistent with our programme with the IMF, we are on course to achieving a primary surplus of 0.5 percent of GDP by the end of the year.”
IMF Program and Debt Restructuring
Ghana has successfully concluded the second review of its Extended Credit Facility with the International Monetary Fund (IMF), leading to the disbursement of the third tranche of US$360 million, bringing total disbursements to about US$1.6 billion. The government has completed its Debt Restructuring program with the Official Creditor Committee (OCC), covering US$5.1 billion, resulting in approximately US$2.8 billion of debt relief. This arrangement means Ghana will not service its debt to official creditors from 2023 to 2026.
Negotiations with Eurobond holders have also been concluded, covering US$13.1 billion, leading to the cancellation of US$4.7 billion of debt and providing debt service relief of US$4.4 billion between 2023 and 2026. Additionally, the government has concluded negotiations with five of the seven Independent Power Producers, leading to a saving of US$6.6 billion over the lifetime of the Purchasing Power Agreements (PPAs).
The Finance Minister highlighted other efforts, including clearing all outstanding Bank Transfer Advices (BTAs) up to 2022 and working to pay BTAs from 2023. Major reforms have been embarked on for State-Owned Enterprises (SOEs), particularly in the Energy and Cocoa sectors, to ensure fiscal prudence and reduce their risk to the budget.
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Source: Felix Nyaaba // expressnewsghana.com
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