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Ghana doesn’t need IMF aid to manage debt crises – Minister, Ofori-Atta

Published

3 years ago

May 12, 2022

Ghana’s Finance Minister, Ken Ofori-Atta has announced that the West African country is committed to managing its debt without assistance from the International Monetary Fund (IMF).

The minister made the declaration at a press conference in Accra on Thursday. He also expressed confidence that government measures were moving the country in the right direction.

“We have committed to not going back to the fund because… the fund knows we are [moving] in the right direction,” Ofori-Atta said.

“It’s about validating the program we have in place and finding other ways of handling our debt.”

The minister’s firm stand comes in the wake of other African countries like Zambia, Somalia, and the Benin Republic struggling with their monetary and capital positions and hanging on to international organizations like the International Monetary Fund to way out of the mess.

Ghana’s public debt which was at about 77% of its gross domestic product at the end of 2021 drove the country into crisis.

The government under President Nana Akufo-Addo has put measures aimed at generating more revenue to strengthen the economy of the West African country.

The controversial electronic levy and the cuts in the salaries of public officials are all part of the measures to restore a depreciating local currency and reassure investors.

Ofori-Atta stressed that the country’s priority for now is to solve the country’s domestic debt, which has interest rates that are three to four times higher than foreign debt.

“We need to decide ourselves what structure would be useful to us,” he added.

According to the World Bank, Ghana’s rapid growth was halted by the COVID-19 pandemic, the March 2020 lockdown, and a sharp decline in commodity exports. The economy had grown at an average of 7 percent in 2017-19, before experiencing a sharp contraction in the second and third quarters of 2020.

Related Topics:Featured Ghana Ken Ofori-Atta

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”