The government has been urged to manage the country’s finances carefully and stick to good economic decisions as it targets an exit from its current International Monetary Fund (IMF) programme-supported programme this year.

According to the Ghana National Chamber of Commerce and Industry (GNCCI) CEO, Mark Badu-Aboagye, on Joy News’ PM Express Business Edition on Thursday, February 5, 2025, “If after the exit of the IMF, we cannot manage our economy, then the IMF should bring their head office here and control us.”

He explained that Ghana usually follows the IMF’s financial guidelines while under the programme, but often returns to poor spending habits once it ends, which pushes the country back to seek help again.

“There shouldn’t be any reason why we should deviate for these important fundamental changes that the IMF have brought to us; that is why we keep going there."

“If after the exit of the IMF, we cannot manage our economy, then the IMF should bring their head office here and control us,” he stated.

Mr Badu-Aboagye said Ghana’s frequent return to the IMF has become a pattern that needs to stop, emphasising that the changes and financial reforms introduced during IMF programmes are long-term measures the country must continue to follow, not just short-term fixes.He warned that failure to manage the economy independently would make the country a permanent client of the Fund.

He said Ghana will be judged on how it manages its economy after the IMF programme ends, stressing that the country must prove it can control spending, carry out reforms, and keep the economy stable without relying on outside monitoring.

He said Ghana cannot continue to blame the IMF while still going back to them for help. He explained that the country must take responsibility for the economic changes and treat them as important national plans.

Mr. Badu-Aboagye’s comments show that many business leaders want Ghana to keep the economy stable and restore investor trust, especially after the challenges the country has faced in recent years.

He also stressed that leaving the IMF programme should not be seen as the final goal. Instead, he said it should push the country to stay disciplined, manage the economy better and continue the changes that have already been made.

Meanwhile, a renowned economist at the University of Ghana Business School, Professor Godfred Bokpin, has warned that ending Ghana's participation in the International Monetary Fund (IMF) programme in 2026 could have serious repercussions for the country.

He expressed deep concerns, saying that such a decision could be disastrous, remarking, “I find it difficult to see how Ghana will survive after the programme.”

At an event hosted by the Canada Ghana Chamber of Commerce, Professor Bokpin shared his views on the “2025 Budget in Perspective” and explained that if the government chooses to exit the IMF programme, the country would likely face considerable fiscal challenges. He stressed the importance of being prepared for these challenges.

He also linked the recent increase in utility costs to IMF-required adjustments, clarifying that the IMF Board made it clear that these measures must be implemented for Ghana to access the vital $360 million balance of payment support.

Addressing the issue of the IMF programme’s potential end, Bokpin referred to the previous administration’s suggestion not to renew the agreement, despite the economy still facing difficulties. He noted that after 2026, Ghana will begin paying back loans, which could place tremendous strain on the national budget.

Reflecting on Ghana’s economic history, Professor Bokpin mentioned that despite the country's initial advantage over nations like Malaysia and Singapore, its economy has never fully taken off since independence.

He observed, “Since 1992, every budget has talked about macroeconomic stability, which is not an end in itself but a means to an end. Ghana’s economy is still struggling, despite initially performing better than Malaysia and Singapore, which are now far ahead.”

He highlighted the fact that while Malaysia has never needed the IMF’s help, Ghana has sought IMF bailouts 17 times. He pointed out that although Ghana has invested similar amounts in development as Malaysia and Singapore, it continues to lag behind, attributing this to poor use of fiscal policy to foster economic growth.

Joe Jackson, the CEO of Dalex, also weighed in, attributing the country’s economic woes to over-borrowing by the previous administration. He noted, “Our difficulties were triggered by over-borrowing. It was alarming to see the government spend 47% of its tax revenue just on debt servicing.” Jackson revealed that in 2020, Ghana's public debt stood at GH¢ 291 billion, or 76.1% of GDP, and that interest payments consumed 47% of government revenue, which he described as a dire situation.

Jackson also emphasized that the country’s exchange rate problems stemmed from the high interest payments on external debt and the repatriation of dividends by foreign investors, rather than any issues with the trade balance. “Our exchange rate struggles are not due to our trade balance, as we’ve had a trade surplus for some time. The real issue is the money we’re sending out to service debt and repatriate dividends,” he stated.

In her opening speech, Linda Vasinani, President of CANCHAM, urged business leaders to take a more active interest in understanding the performance of the economy to better navigate future challenges.

The session offered an in-depth look at the 2025 Budget and discussed the future of the IMF-supported programme, as well as its implications for the private sector.