Professor at the University of Ghana Business School (UGBS), Elikplimi Komla Agbloyor, has advised the government to adopt alternative measures in the event of an unsuccessful IMF deal.

The IMF's aid, according to the professor, may not be sufficient to help mitigate the high economic crisis the country is currently facing. Hence, he recommends that the government prepare a plan B.

He said, “What I was expecting the President to do is that we should have a plan B. For example, in case there is a delay in securing a deal with the IMF or in case the deal doesn’t even go through, which is a possibility, do we have a plan B? I am saying this because the IMF in itself will help, but I don’t think it is sufficient. "

His remarks follow President Akufo-Addo’s address to the nation on the economy amidst the high cost of living.

Professor Komla mentioned that there is an expected 3 billion dollars to flow into the economy by the close of the year if the IMF deal is secured successfully. This move, he said, would slow the free fall of the cedi and make a probable “recession more bearable”.

“One of the causes of increases in the cost of living or inflation is the depreciation of the cedi. So if we can secure an arrangement with the IMF, then that will help the cost of living.

In reference, he cited Egypt as an example, arguing that the country is still dependent on Gulf countries for support even after securing about five billion dollars to shore up its foreign exchange transactions.

In view of this, he stressed that “apart from the deal with the IMF, the government should be making plans for other options to increase our foreign exchange reserve." Especially in the short term,” the associate professor advised.

Ghana is currently in hard times. Citizens wake up to new fuel prices almost every three to seven days. The alarming depreciation of the Ghana cedi coupled with its significant effect is reflected in all other aspects of the livelihood of ordinary Ghanaians.

Several labour unions have embarked on industrial actions, and 80 members of the majority NPP in parliament demanded the removal of the finance minister.

Source: The Independent Ghana