Ghana's finance minister, Ken Ofori, has been overjoyed since the IMF loan was approved. His Twitter account has been completely focused on the approved deal. In his most recent comments on the matter, minister Ofori Atta demonstrated his noisy demeanor by claiming that the permission demonstrates how Ghana can simply access the international capital market for additional funding.
For those who are unaware, Ghana's inclusion on the IMF's list is sure to pique the interest of worldwide business circles. That means Ghanaians should brace themselves for investors who were scared away by our poor debt listing previous to IMF clearance. With the current breakthrough, they are likely to feel confident enough to overcome their previous reservations.
Perhaps this explains why, immediately following the IMF permission, Minister Ofori Atta stated that Ghana is on track to re-enter the international capital market. That implies Ghana may borrow abroad again without having to rely solely on the Bretton Woods organizations. Businesses or investors, whether local or international, should not be afraid to give us funds for other important areas of the Ghanaian economy.
Clearly, if these are not just assumptions, but genuine stimuli that are likely to strike the Ghanaian economy, our economy will be back on track in no time. So the IMF is the miraculous wand in this case. Is this, however, Ghana's first loan from the International Monetary Fund? It may have begun in the First Republic, but our highest moment of involvement with the IMF happened during Rawlings' PNDC, and practically all administrations in the Fourth Republic followed suit, adding to the pile.
This is our 18th fruitful relationship with the IMF. So, what exactly is the source of your joy? Indeed, observers of this government's dealings with the IMF are unsurprised. This is the administration that threw a Kenkey celebration to mark Ghana's last withdrawal from a similar IMF program. It appears that the administration's populist orientation knows no bounds, and they will continue to parade the smallest victories with all pomp and splendor.
However, in the instance of the IMF, I make the bold prediction that the IMF breakthrough is not yet a cause for celebration. There are still difficulties that need to be addressed before we can experience the IMF breakthrough. As things stand, there is no assurance that the IMF loan would entice other capital market lenders and investors to return to Ghana. This is due to the fact that there are still wastes in the system that may impede capital flow into the nation.
The number of ministers appointed by the President exceeds eighty, which drew the attention of the IMF and the international capital market during the preparations for the IMF loan. Once again, there is little evidence that the elite is working to change our fiscal policies. Even people named in several corruption allegations are able to roam the streets, as are those named in official Auditor General reports.
Top government officials, many of whom work at the president, were recently entangled in a severe controversy involving small-scale mining. Instead of attempting to prove the legitimacy or otherwise of the report of the President's ministerial committee, the concerned parties are battling Professor Frimpong Boateng's report. In the days leading up to the IMF loan deal, the administration presented what has easily become a ruse of lowering government spending.
Indeed, the decision to require ministers and all other government officials to cut their public spending has completely failed. Unfortunately for the government, the IMF, and other possible lenders and investors are already thinking about these challenges. So it's not uhuru or pleasure for Minister Ofori Atta just yet.
These market participants are also aware of Ghana's debt-free status throughout President Kufuor''s HIPC tenure. They also understand how Ghana has become a frequent client of the IMF. So a little $3 billion may not be the magic wand to attract businesses and investors to Ghana. For the time being, the finance minister and his colleagues can only exist in their fantasies and populist cosmetics.
blogpay
Total Comments: 0