GHANA’S President-elect John Dramani Mahama has assured that his administration will not abandon the country’s $3bn IMF rescue package. Instead, he plans to renegotiate aspects of the deal to curtail wasteful state spending and address pressing energy challenges, he revealed in an interview on Friday.
Mahama, who won the December 7 election with 56.55 percent of the vote, inherits a nation grappling with its worst economic crisis in decades. Inflation, currency depreciation, and skyrocketing living costs have taken a toll on the West African country, which is also the world’s second-largest cocoa producer.
‘We’re bound by the IMF agreement, but adjustments are necessary to align it with Ghana’s realities,’ Mahama clarified. He emphasised the need for fiscal discipline, stating, ‘If the president asks citizens to tighten their belts, he must do the same.’
Tackling economic woes
The IMF deal, secured under outgoing President Nana Akufo-Addo in 2023, helped stabilise the economy, reducing inflation and restoring growth. However, Mahama believes the programme did not adequately address core issues such as excessive taxation and government waste.
‘The multiplicity of taxes has made Ghana unattractive for businesses,’ he argued, highlighting the need for reforms that ease economic pressure on citizens while maintaining fiscal responsibility.
Mahama plans to initiate discussions with the IMF for an early review mission. These talks will focus on streamlining debt restructuring and revising the deal to prioritise impactful economic reforms.
Fixing Ghana’s energy sector
Mahama’s administration is also set to tackle the nation’s energy woes, which have plagued the economy with frequent power outages. ‘The electricity company of Ghana is the weak link in the energy value chain,’ Mahama stated.
His plan includes sustainable solutions to stabilise the sector and prevent future disruptions. ‘We’re entering a critical phase, and quick action is essential to ensure reliable energy supply,’ he added.
With his National Democratic Congress also securing a comfortable majority in parliamentary elections, Mahama is poised to pursue his agenda with the backing needed to implement these sweeping reforms.
By addressing Ghana’s fiscal and energy challenges head-on, Mahama aims to restore economic stability and improve living standards for millions of Ghanaians.
