Use IMF Cash Judiciously – Mahama

Former President, John Dramani Mahama says government owes it a duty to judiciously utilize the recently approved $600 million IMF bailout to ease the economic challenges facing Ghanaians.

The disbursement, approved by the IMF Executive Board on January 19, 2024, follows Ghana’s successful completion of the 2023 Article IV consultation and the first review of the 36-month Extended Credit Facility arrangement.

Expressing concern about the persistent hardships faced by Ghanaians, Mr Mahama emphasized that the Akufo-Addo-led administration must ensure that the funds are used prudently for the needed relief to the suffering of citizens.

Despite the release of the first tranche last year, Mr Mahama contends that Ghanaians continue to endure difficulties.

“Under normal circumstances, the release of $600 million by the International Monetary Fund (IMF) to the government of Ghana should provide relief to the already overburdened and suffering Ghanaian. It is, however, evident that Ghanaians will continue to suffer as long as the Akufo-Addo-Bawumia administration and NPP remain in office,” he wrote in a Facebook post.

Mr Mahama highlighted the potential impact of the impending Value-Added Tax (VAT) on electricity consumption, warning that it could increase tariffs, leading to higher prices for goods, services, and transport fares.

“Implementing VAT on electricity consumption will increase tariffs by almost 21% and exacerbate the hardship on Ghanaians. This will affect the prices of goods, services, and transport fares. I agree with organized labour that the government must reverse its decision to start collecting VAT on electricity consumption.”

Mr. Mahama stressed on the importance of responsible and thoughtful management of IMF funds, even as he acknowledged that the NDC would be prepared to tackle Ghana’s financial challenges and deliver relief when it takes power in January 2025.

“On my part, I will, from time to time, continue to engage the Ghanaian public about my vision to build the Ghana we want and how we will work together to create well-paying jobs through my 24-hour economy policy and other pragmatic initiatives”.

He also called on the NDC minority in parliament to exercise rigorous oversight and scrutinize government’s actions.