Ghana’s President Nana Akufo-Addo has said that the $3bn (£2.4bn) bailout from the IMF will not immediately address the country’s economic challenges.
In a televised address to the nation on Sunday, the Ghanaian president said the IMF bailout would restore confidence and put the country’s economy back on a sound footing.
“It should lead to the restoration of confidence and the reopening of avenues that have been closed to us this past year and a half. It should also lead to the resumption of many of the infrastructural projects that have stalled,” President Akufo-Addo said.
He acknowledged that seeking help from the IMF was a painful but necessary decision to help the economy recover from the impact of the global pandemic and Russia’s invasion of Ukraine.
But critics have said the country’s economic problem is partly due to gross mismanagement.
Ghana is facing one of its worst crises in a generation, with high public debt and inflation. As part of the IMF bailout, the government will be expected to reduce public expenditure and increase domestic revenue.
This will mean clamping down on tax evaders, new taxes, or an upward review of existing ones.
Ghana has already received the first tranche of $600m after the IMF approved a $3bn bailout programme on 17 May.