The latest review by the International Monetary Fund (IMF) has revealed that Ghana’s new administration under President John Mahama acknowledges the pivotal role played by the previous Akufo-Addo government in stabilizing the economy and laying the foundation for ongoing reforms.
According to the IMF’s Fourth Review under the Extended Credit Facility, the Mahama-led government expressed “strong support” for the current IMF-supported programme and recognized the Akufo-Addo administration as having provided a “credible anchor” to address long-standing vulnerabilities and restore market confidence.
This recognition comes amid heightened political debate in Parliament over the source of Ghana’s recent economic gains. The opposition National Democratic Congress (NDC) attributes the progress to legacy policies from Mahama’s earlier tenure, while the ruling New Patriotic Party (NPP) insists the improvements stem from recent interventions.
NDC MP Eric Afful cited falling inflation from 21.2% in April to 18.3% in May 2025—and a strengthening cedi as evidence of Mahama-era reforms. He credited tight monetary policy, fiscal consolidation, and renewed investor confidence for the turnaround.
However, NPP MP Kojo Oppong Nkrumah countered that the cedi’s rebound was largely driven by short-term measures, including a $1.4 billion injection from foreign reserves, which he argued does not reflect sustainable economic strength.
Other lawmakers voiced caution. . Energy Minister John Jinapor cautioned that while inflation has declined, prices are still rising, a case of disinflation, not deflation. Dr. Kabiru Mohammed warned that the cedi’s appreciation, driven by central bank interventions, creates an illusion of economic strength and contradicts market principles. He also questioned the improved debt to GDP ratio, attributing it more to debt restructuring than real economic growth.
The IMF report supports these concerns, noting that while Ghana’s external position has improved—thanks to strong exports and remittances program performance deteriorated at the end of 2024 due to fiscal slippages and delayed reforms. The Mahama administration has since enacted corrective measures, including tighter monetary policy, public financial management reforms, and a budget aligned with IMF targets.
As Ghana continues its path toward economic recovery, the IMF emphasized the importance of sustained fiscal discipline, structural reforms, and transparent governance to ensure long-term stability and inclusive growth.
Leave a Reply