Ghana’s President Nana Akufo-Addo has announced that the country will soon resume borrowing as it grapples with its worst economic crisis in a generation.
Speaking at the Qatar-Africa Economic Forum in Doha, President Akufo-Addo emphasized the opportunity to take advantage of global savings.
“There is no rush but obviously, why not take advantage of global savings, it makes a lot of sense to be able to do that,” President Akufo-Addo stated.
However, he also highlighted the need for disciplined financial management following Ghana’s recent $3 billion bailout from the International Monetary Fund (IMF).
Ghana is currently in negotiations with external creditors, seeking debt relief of approximately $10.5 billion.
The country had been shut out of the international capital market due to its significant debt burden but gained access as a result of the IMF bailout.
Excessive borrowing has been a point of criticism for the Ghanaian government, with opposition groups attributing it as one of the main factors contributing to the ongoing crisis.
However, the government has attributed the economic challenges to external factors such as Russia’s invasion of Ukraine and the global impact of the coronavirus pandemic.
To address the crisis, President Akufo-Addo has outlined measures to reduce government expenditure and increase domestic revenue mobilization.
The support from the IMF is expected to aid Ghana in tackling the high inflation rate, which stands at over 40%.
As Ghana looks to navigate its economic challenges, the government’s decision to resume borrowing will play a crucial role in securing financial resources needed for recovery and stability.