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Ghana: President Akufo-Addo defends decision to call for IMF help amidst economic crisis

Published

2 years ago

July 9, 2022

President Nana Akufo-Addo of Ghana has defended his decision to seek help from the International Monetary Fund (IMF) after declining the moves in the past.

President Akuofo-Addo says the decision was necessary to “restore public finances” after the twin shocks of the pandemic and the Russian invasion of Ukraine.

The return to the IMF has divided opinion in Ghana, with critics accusing President Akufo-Addo of reneging on his initial decision not to call on the IMF after saying a new tax would boost the economy.

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

However, the President in a statement issued by the country’s information ministry last week authorized Finance Minister, Ken Ofori-Atta to begin discussion with the monetary body following a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgieva.

According to statement from the Ghana’s presidency, IMF officials are in Ghana to help “restore macroeconomic stability, preserve debt sustainability and promote inclusive and sustainable growth.

“All countries in the world are striving to return to a state of normality after the devastating impact of the Covid-19 pandemic, the consequences of which were exacerbated by the Russian invasion of Ukraine,” the president said.

“In our case, we have decided to seek the collaboration of the IMF to repair, in the short term, our public finances,” 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.

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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.”