Economist and Director of Research at the Institute for Economic Affairs, Dr. John Kwakye, has downplayed claims that Ghana needs financial support from the International Monetary Fund (IMF).
According to him, there’s no need for Ghana to return to IMF because the country is endowed with natural resources that can help build the economy if tapped and utilized wisely.
Speaking to the media, he said it’s about time government used the country’s resources judiciously to solve the poverty problem.
“I don’t even believe that we need the IMF. We are not a poor country. We are sitting on natural resource worth that is estimated to be over US$10 trillion.”
Further explaining why Ghana and its neighbouring countries are poor, Dr Kwakye asserted, “Look at Nigeria. They have very huge amount of resources but look at their people. They are probably also poor, and you ask yourself, why is that? This is because they’ve given away all the oil and gas and so on that, they have exploited to investors, and the politicians have teamed up with foreigners, so what trickles down to the ordinary person is nothing.”
“If we continue on that line, we will remain poor. So I don’t see why we should be running to the IMF. You go to the IMF and they impose all kinds of conditionalities on you, which has never worked for us. If we can use our own resources judiciously, then we don’t have to go to the IMF,” he added.
Ghana will rather go to the Eurobond – Ofori-Atta
Earlier this month, Finance Minister, Ken Ofori-Atta underplayed reports that government is considering the option of returning to the International Monetary Fund for some financial support to help stabilise the economy.
This came after predictions from some economists and finance professionals that the country will secure a program from the fund to help deal with current revenue pressures and rising debt stock.
But in an interview with Citi Business News, Ken Ofori-Atta noted that government will rather consider going unto the Eurobond Market.
“Absolutely not. We’ve gone to the Eurobond market, I guess 4 out of the 5 years since we came and those are always alternatives that we consider,” he said.