IMF $3bn bailout package for Ghana defies Akufo-Addo’s ‘Ghana beyond aid’ policy

Ghana, formerly praised for its stability and good governance, is finally getting some breathing room after Ghanian officials announced last week (18 May) that the $3 billion bailout for the West African nations had finally been approved by the International Monetary Fund (IMF)
Ghana has been facing a severe economic crisis since the onset of the Covid-19 pandemic and the war in Ukraine and, according the Ghanian officials, the IMF bailout will help reset the economy and ease the economic hardship on its citizens. Though “far from a magic solution wand,” the long-awaited bailout to aid the government’s economic growth recovery plan is “a crucial first step on the necessary journey of strong reforms, inclusive growth and relentless pursuit of our growth agenda,” Ken Ofori-Atta, Ghana’s Finance Minister, said. The package “aims to restore macroeconomic stability and debt sustainability while laying the foundation for an inclusive recovery”, Kristalina Georgieva, the IMF’s Managing Director, said in a statement.
The three-year, $3 billion loan is widely hoped to get the West African country out of its worst economic crisis in decades. The agreement between Ghana and the Washington-based lender marks the culmination of a round of negotiations that began in December 2022, when the West African country announced that it would need to default on its debts. According to the World Bank, Ghana is one of the most indebted countries on the continent, with a debt of $58 billion representing 105% of its GDP. With the IMF’s help, Ghana hopes to get out of debtor’s doldrums and regain the confidence of markets and investors. However, the need for international support is a blow to public opinion and President Nana Akufo-Addo, who rose to prominence with the slogan “Ghana beyond aid”, promising Ghana’s economic independence from rich countries.