Here’s why Professor Godfred Bokpin advocates for the extension of the current IMF programme.
Professor Godfred Bokpin, a respected finance and economics professor at the University of Ghana, has advocated for an 18-month extension of the country’s current IMF programme, emphasizing the importance of this extension in preventing potential economic shocks. In an insightful interview with JoyFM on April 3, 2025, Professor Bokpin outlined several reasons why extending the programme is vital for Ghana’s continued economic stability, especially in light of the global financial uncertainties that the country faces.
According to Professor Bokpin, although the government has made progress in managing its finances through significant expenditure cuts and the implementation of various structural reforms, these efforts may not be enough to shield Ghana from long-term economic challenges. He pointed out that the financial support provided by the International Monetary Fund has been crucial in stabilizing the economy, but without further backing, there is a risk of economic setbacks. The global economic landscape remains unpredictable, and Ghana needs additional time to adjust to these changes and solidify its fiscal foundation.
“The IMF programme has been essential in stabilizing our economy, but we cannot ignore the challenges ahead. Extending the programme for another 18 months will give us the much-needed time to make necessary adjustments and avoid major economic shocks,” he explained.
Professor Bokpin noted that the government’s 2025 budget, which includes measures to address fiscal imbalances, is an important step forward. However, he warned that if the IMF programme were to end prematurely, the country could still face significant risks. These include external challenges such as rising global inflation and difficulties accessing international borrowing markets, which could prevent the government from meeting its fiscal targets.
The professor also highlighted Ghana’s fiscal performance in 2024, which was worse than expected. The country experienced a higher-than-anticipated fiscal deficit, and government arrears had exceeded 67 billion Ghana cedis. These figures, according to Bokpin, demonstrate the need for additional time to achieve fiscal sustainability. “The fiscal deficit for 2024 was larger than expected, and the arrears are concerning. We also face substantial financing needs for growth. This clearly indicates that the current IMF programme has not kept us on track, and extending it will be necessary to get back on course,” he remarked.
Another critical concern raised by Professor Bokpin was the potential political implications of ending the IMF programme before the 2026 elections. He noted that political cycles often lead to disruptions in government policies and spending plans, which could exacerbate the country’s economic difficulties. In light of this, he argued that an extension of the IMF programme would provide stability and continuity, preventing potential setbacks during an election period when political pressures might lead to unsustainable financial decisions.
Professor Bokpin also emphasized the need for a gradual approach to fiscal adjustments. He argued that such an approach would allow the government to maintain key growth-oriented initiatives, such as job creation and the development of a 24-hour economy, while still ensuring fiscal discipline. He believes that a more gradual pace of fiscal reforms would strike the right balance between economic austerity and the need for long-term growth.
“A gradual approach would allow the government to focus on important projects that foster economic growth, like job creation initiatives, while also maintaining a disciplined fiscal stance. This balance is crucial for sustaining the momentum towards growth and stability,” he said.
Although he acknowledged the government’s ongoing efforts to reduce expenditures and implement structural reforms, Professor Bokpin also expressed caution. He pointed out that the pace of these reforms could slow economic growth in the short term, and it is crucial to strike a balance that ensures fiscal stability without stifling economic recovery.
In conclusion, Professor Bokpin’s call for an 18-month extension of the IMF programme reflects a deep understanding of the complexities of Ghana’s economic challenges. He believes that the extension would give the country more time to solidify fiscal reforms, manage external shocks, and create a more stable economic environment as the country moves towards the 2026 elections. Without this extension, Ghana could face significant hurdles in meeting its fiscal targets, managing debt obligations, and maintaining economic stability in the face of global and domestic challenges.
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