President Mahama outlines 8 key pillars of the economic reset, starting with completing the IMF program with discipline

The President of the Republic of Ghana H.E John Dramani Mahama outlined 8 key pillars of the economic reset, starting with completing the International Monetary Fund (IMF) program with discipline.

“ Number one is completing the IMF program with discipline. We’ll continue the discipline in government expenditure and borrowing and work to achieve all targets under the extended credit fund with a program with the IMF. We expect to conclude the 4th review of the IMF program in June 2025 with a target to exit at the end of the program in 2026 and thereafter we’ll participate in Article four consultations and adopt the policy support instrument framework signalling Ghana’s return to responsible, non borrowing engagement with the fund.” He stated.

The President emphasized the importance of reopening domestic and international capital markets and strengthening sovereign funds.

“And the second is reopening domestic and international capital markets. We’re working to reopen Ghana’s bond market in collaboration with the IMF and our development partners, the Ghana Stock Exchange and local banks. However, future borrowing will be linked to self financing commercially viable projects, particularly by MDAs, MMDAs and SOEs, ensuring value for money and sustainable repayment” President Mahama said.

Speaking at the Ghana CEO Summit today in Accra, under the leading Ghana’s economic reset, transforming business and governance for a sustainable, futuristic economy , President Mahama Thirdly spoke about strengthening sovereign funds and local government financing.

“Will amend the public financial management act and constitution to make contributions to the sinking and stabilization funds mandatory. It will not be optional, so a certain percentage of funds must be committed to the sinking and stabilization funds.” He added.

He also unveiled plans to empower MMDAS to issue infrastructure and municipal bonds secured against a portion of their district assembly’s common fund to fund infrastructure projects such as roads, schools, water systems and local industry in the districts.

The President underscored the need to clear verified arrears and rationalize public investments, prioritizing new projects based on need and funding availability.

“And the fourth is clearing verified arrears and rationalizing public investments. The Auditor General is completing an audit of arrears and commitments, government commitments, and we expect to receive his report by the end of May.

The President stressed the importance of accelerating public financial management reforms and revitalizing exports.

“ And the fifth is accelerating public financial management reforms, and we have started that already. We amended the PFMA to include fiscal responsibility clauses. We reactivate stalled reforms, including the Treasury single account TSA, the integrated tax administration system and real time budget monitoring tools to improve efficiency, reduce waste and to curb corruption.

“And the sixth is revitalizing exports through Ghana Exim Bank.” He indicated,

According to him, The Ghana Exim Bank will be repositioned to support non traditional exports and agro processing, light manufacturing and SMEs, enhancing foreign exchanging flows and creating jobs in the real economy.

He also figured out agriculture for economic transformation agenda will also roll out massive investments in oil palm, in cocoa, cashew shell and other high value tree crops.

“ With two of our major export commodities, gold and cocoa, enjoying a good run in international markets, we will build our reserves and buffers to create the resilience to withstand any future global shocks.” President announced.

The President envisions Ghana as a regional hub for trade and investment, prioritizing port expansion and financial services.

“And then the seventh is building Ghana into a regional hub for trade and investment. We envision Ghana’s West Africa’s commercial transport and Digital Services hub. Our reset will prioritize port expansion, financial services, health, education and industrial corridors linking Ghanaian business to the African continental free trade area and beyond.” President Mahama.

The President pointed up the need for infrastructure development to stimulate growth, focusing on innovative financing systems.

“ And then eight is resuming infrastructure development to stimulate growth. Infrastructure investment is not optional. We’ll resume priority projects in the roads, energy, water, housing and urban renewal sectors, not through reckless borrowing, but through innovative financing systems like the big push, PPPs and other strategic partnerships.” President Mahama intensified.