Audio By Carbonatix
A law lecturer and aide to Kennedy Agyapong has stated that the International Monetary Fund (IMF) is playing a critical role in helping Ghana’s economy thrive, not only through financial assistance but also by restoring market access and policy credibility.
Speaking on JoyNews’ AM Show on Monday, December 29, Kobby Amoah said the government must take deliberate steps to strengthen and sustain the economy, even as it benefits from IMF support.
“Government has to make sure that the right steps are taken to improve the economy,” he said.
Mr Amoah explained that Ghana’s participation in an IMF programme provides more than just loans, noting that it opens doors to international markets and enforces economic discipline through technical support and strict benchmarks.
“Under the performance of the economy, the IMF programme is also supporting and helping because it gives market access to borrow and do business,” he explained.
“There is also greater discipline through technical support and benchmarks, which require governments to be disciplined before funds are released.”
According to him, the true performance of the economy cannot be attributed solely to ministers or current economic managers, stressing that Ghana will only be able to fully assess their effectiveness by August 2026.
“This may seem good now, but when governance is left entirely in the hands of those in charge, that is when we will see their true performance and know whether they are managing the economy well,” he said.
Mr Amoah noted that Ghanaians should take some comfort in the relative stability of the cedi against the dollar, expressing hope that the government would put measures in place to sustain this stability.
He further argued that Ghanaians often vote out governments during periods of economic crisis without fully appreciating the cyclical nature of IMF programmes and their effects.
“Any time there is an IMF programme, it usually follows a severe economic downturn. People vote out the government, and the new government inherits the benefits of the programme,” he said.
“When the new government starts, people praise it because the economy and currency appear to be doing well, forgetting that the country is still under support.”
According to Mr Amoah, the real test of economic management comes after IMF support ends.
“When the support stops, that is when we truly know the strength of the economic managers and how well the economy is being run,” he added.
He cautioned against measuring the value of IMF programmes solely by the size of the loans Ghana receives, stressing that their real benefit lies in restoring economic health and international confidence.
“The mistake we make is quantifying the value of an IMF programme by the loans. Before a country goes to the IMF, it is often close to bankruptcy and lacks credibility. But once the programme is in place, it restores confidence and allows others to do business with you again,” he said.
Mr Amoah noted that the IMF’s ultimate value lies in the economic and policy credibility it confers on participating countries.
“The goal is not just the loans. Market access means you are no longer seen as a country that cannot be dealt with. It gives you economic and policy credibility,” he added.
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