Ghana is in shambles as a result of bad government policies, and Mahama blasts IMF boss for ignoring 'facts.'
Former President John Dramani Mahama has slammed the International Monetary Fund's Director, Kristalina Georgieva, for attributing Ghana's current weak economic situation to the COVID-19 pandemic and the Russia-Ukraine war.
According to Mr Mahama, the IMF chief's assertion ignores the fundamental facts underlying Ghana's economic challenges, which he attributes to mismanagement on the part of the Akufo-Addo administration.
"While the norm in international diplomacy is to be cautious in what one says, comments by high-ranking officials must be based on facts that take into account local realities and opinions."
"The undeniable fact is that Ghana is in a mess because of this government's bad policies, which have contributed massively to the dire state of affairs," the former president wrote in a Facebook post seen by GhanaWeb.
While listing some of the government actions he believes are causing the current problems, Mr Mahama noted that the IMF chief may have set herself up for a false diagnosis.
"International diplomats must consider these facts rather than simply ignoring them, lest they make incorrect diagnoses and prescribe inappropriate treatments."
"The consequences of the government's ill-adviced policies such as the botched, insensitive and dubious cost in closing down locally owned banks, unbridled levels of corruption and lack of accountability including the mismanagement of COVID-19 funds, unconventional borrowing practices riddled with opaqueness and conflicts of interest, resulting in an unsustainable debt envelope, costly, experimental and untested programmes, etc., cannot be ignored in understanding the current dire state of the Ghanaian Economy.
"Therefore, the rhetoric that emanates from international diplomats must reflect local realities. The Ghanaian economy must be managed first for the Ghanaian who lives and experiences it daily, not just for an international audience," he wrote.
Ghana is seeking to raise some $3bn balance of payment IMF support programme to help resolve some of its immediate economic challenges.
The government began discussions with the Bretton Wood Institution in July 2022, reversing President Akufo-Addo's pledge not to seek a financial programme from the IMF.
There has been a local split in opinion on what accounts for Ghana's current economic challenges, with the government blaming the impact of COVID-19 and the Russia-Ukraine war.
Critics, including the opposition, blame the economic situation on government inefficiencies.
Kristalina Georgieva told Norvan Reports at the Africa Climate Change Adaptation Summit that shocks from the two unforeseen factors have heavily impacted the economy and are to blame for the country's woes, rather than "bad policies" allegedly implemented by the government.
"Like everyone else on the planet, you have been harmed by exogenous shocks: first, the pandemic, then Russia-Ukraine, and we must recognize that this is not due to bad policies in the country, but to this combination of shocks," she added.
The IMF Director added that Ghana, as a strong country in the sub-region, should be helped by the IMF to recover because Ghana's strength benefits neighboring countries.
"As a result, we must support (Ghana) because you are a member; you are a strong country with fantastic people, but we must also support Ghana because your strength contributes to the strength of your neighbors; it contributes to a stronger world," she said.
Speaking further about the expected deal with Ghana, she stated that the IMF is determined to reach an agreement with Ghana by the end of this year.
"I am determined that we will reach an agreement by the end of this year," she joked.
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