Mahama Outlines His Plans to Stabilize Ghana's Economy

President-Elect John Dramani Mahama has unveiled his strategy for stabilizing Ghana’s economy, highlighting the necessity of macroeconomic stability and debt sustainability to address the country’s ongoing financial challenges. In an interview with the Voice of America (VOA), Mahama explained that the current economic climate requires a multifaceted approach, addressing not only macroeconomic stability but also the growing concerns surrounding the nation’s debt.

Mahama emphasized that, unlike past engagements with the International Monetary Fund (IMF), which focused solely on stabilizing Ghana’s economy, the situation now demands a more comprehensive strategy. The current IMF programme, which his administration did not participate in negotiating, must be continued, according to Mahama. He revealed that his government has already sought discussions with the IMF to ensure their approach aligns with the ongoing programme and to address any areas of concern. “In previous years, our engagements with the IMF were solely about achieving macroeconomic stability. However, the current situation demands more. We are committed to continuing the IMF programme, and we have requested discussions with the IMF because we were not part of the original negotiations. We need to ensure that we are all aligned in terms of implementing the programme,” Mahama said.

Despite this, Mahama reassured the public that his government would not abandon the programme. Instead, he suggested that there could be room for adjustments within the framework of the agreement to address Ghana’s current challenges. He stressed that any changes would be made in full consultation with the IMF, ensuring that the programme’s implementation continues uninterrupted until its completion. “We are not abandoning the programme. However, within it, we hope to explore ways to adjust and tweak certain aspects, but this will be done in consultation with the IMF,” Mahama explained.

In outlining his administration’s broader economic vision, Mahama identified several key priorities, including reducing inflation, stabilizing the national currency, addressing the fiscal deficit, controlling government expenditure, and improving revenue generation. These, he stated, are the areas that need immediate attention to restore economic stability. He acknowledged that the current IMF programme restricts the government’s ability to implement drastic reforms at this stage. However, Mahama expressed confidence that his government would be able to build on the existing reforms and introduce its own policies once the current extended credit facility ends.

“The budgets must align with the IMF programme, which limits the ability to make drastic reforms right away. However, once the current extended credit facility expires, we will introduce our own programme and deepen the reforms that are currently in place. We accept the reforms being made under the IMF programme, but we intend to build on them moving forward,” Mahama stated.

Mahama also made it clear that tackling inflation would be the government’s top priority. Stabilizing the currency would follow closely, as well as reducing the deficit and cutting down on unnecessary government spending. Boosting revenue generation was also high on the agenda, with Mahama stressing the importance of strengthening the country’s fiscal position to ensure long-term economic sustainability.

His administration’s strategy also focuses on fostering economic resilience by addressing structural issues, improving governance, and creating an environment conducive to business growth. Mahama believes that these measures will lay the groundwork for a stable and prosperous economy in the long run.

By focusing on these key pillars, Mahama’s administration is aiming to restore confidence in the country’s economic prospects. He remains confident that, with the right adjustments and continued engagement with the IMF, Ghana can navigate its current economic difficulties and embark on a path toward sustainable development and growth.