Former President, John Dramani Mahama, says Ghana’s current negotiations with the International Monetary Fund (IMF) should be the last of its kind.
According to him, the country must create sustainable policies to keep the economy afloat, without ever resorting to the IMF.
Speaking in an interview on VOA on Wednesday, he blamed the prevailing economic woes on macro-economic instability and “government’s borrowing spree.”
Mr. Mahama, therefore, expressed his displeasure with the economy and added that the country’s ongoing talks with the global lender should be the last.
“This should be the last time we go to the IMF. Going and coming really creates a certain instability in the whole system and it also reduces the faith that people have in our democracy”, he said.
Touching on the existing economic difficulties, the former President assured that the next NDC administration will roll out very robust mechanisms to deal with the crisis.
He said the party will consider measures such as a review of certain sections of the 1992 Constitution as well as the creation of an enabling domestic environment that will propel economic activities.
Mahama’s remarks come at a time when the country is experiencing fiscal deficits as well as a host of other economic challenges.
Currently, the country’s inflation rate for September has hit 37.2%; the highest in the last decade. This is against the 33.9% recorded in August 2022.
According to the Ghana Statistical Service, five groups recorded inflation rates higher than the national average in September.
They were Housing, Water, Electricity, Gas and Other fuels (68.8%); Furnishings, Household Equipment and Routine Household Maintenance (51.1%); Transport (48.6%); Personal Care, Social Protection and Miscellaneous Goods and Services (42.6%) as well as Food and Non-Alcoholic Beverages (37.8%).
The implementation of the utility tariff in September 2022 also influenced the surge in inflation in Housing, Water, Electricity and other Fuels group.
This situation has therefore compelled citizens to revive their calls for government to address the situation.
Meanwhile, Finance Minister, Ken Ofori-Atta is in talks with the International Monetary Fund to agree on mutual terms in a proposed IMF bailout request by Ghana.
According to government, it is hopeful of a favourable agreement with the IMF, that will help put the country’s economy on a sound footing.