Information Minister, Kojo Oppong-Nkrumah, has said support from the International Monetary Fund (IMF) will not be enough to transform Ghana’s economy.
Speaking on TV3’s News Day monitored by The Independent Ghana on Monday, July 4, Mr Oppong-Nkrumah explained that the balance and payment support from the Fund will be targeted at strengthening the Cedi and its availability.
According to him, for Ghanaians to see a transformation in the economy, citizens and stakeholders in the capital market must collaborate with the government on its programs being supported by the Fund.
Mr Kojo Oppong-Nkrumah said: “The IMF balance of payment support will not transform your economy. I’ve been clear. It will provide you with some forex which will support your currency which will improve liquidity on the fiscal side. But you need a broader program that responds to other bigger questions in the economy; unemployment, dealing with social protection programmes, inflation for example stimulating the real sector of the economy to grow.
“It is not going to be the IMF that will do that for you. That is why you put on the table an enhanced program with clarity on how to do all of the things, and invite the fund, capital market, and citizens to all fund various parts of the programs.”
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The Information Minister further revealed that focus needs to be shifted to the manufacturing industry, where the country is able to produce and export more to earn more foreign currency.
He said: “You need to be able to stimulate a lot of resources particularly into industry which will ensure there is more productivity of goods and services for export to earn a lot of hard currency which will translate into an improvement in your balance of trade and your balance of payment on your own then you don’t require the Fund or anybody coming in to support you on the balance of payment side.”
Meanwhile, Mr Oppong-Nkrumah has noted that the fate of several flagship programmes by the government such as the free SHS policy, Obatanpa programme, One District One Factory, will be determined during negotiations with the Fund.
The Minister stated: “We expect some very frank negotiations and it will determine where we are going on those programmes.”
President Akufo-Addo last week authorized Finance Minister, Ken Ofori-Atta, to commence formal talks with the International Monetary Fund with regards to solving the economic challenges facing the country.
On July 1, the IMF acknowledged receipt of Ghana’s request and pledged to support the government of Ghana.
According to reports, the IMF team will touch down in Ghana and commence negotiations with the government on Wednesday, July 6.
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Growing Ghana’s industry
Mr Oppong-Nkrumah has said the government has been committed to developing the country’s industrial sector.
He mentioned the One District One Factory Programme as well as preparations for the African Continental Free Trade Area (AfCFTA) as some initiatives the government has taken.
Mr Oppong-Nkrumah said: “We rolled out a 1D1F programme. We’ve been aggressive on the AfCFTA. These are the elements of what you need to bring out that transformation of the Ghanaian economy. We have rolled out the Integrated Iron and Steel Industry, the Ghana Integrated Aluminum Enterprise to be able to build stronger value chains to produce more and export more, earn more foreign exchange, bring it here and at the same time create more jobs and make income available for people.”
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The Information Minister, however, revealed that difficulty in accessing resources has marred the government’s progress.
He blamed the lack of funds on the frustration of government business meant to generate revenue domestically.
He stated: “We live in a country where no matter at the end of the day, no matter what you say, tax to GDP ratio is around 12 per cent and you put in place measures to raise more revenue which end up over and over again being obstructed.
“I think it is important we have a clear conversation that you cannot continue to obstruct the revenue generation measures of government, complain about government borrowing and expect that out of nowhere, resources will still (come in).”
Source: The Independent Ghana
