Ghana’s president, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister, Ken Ofori-Atta to begin formal engagements with the International Monetary Fund, IMF, to support the country’s economy.
The country’s information ministry in a statement said the order follows a telephone conversation between President Akufo-Addo and the IMF Managing Director, Kristalina Georgieva.
The statement said the engagement with the IMF will seek to provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the Covid-19 pandemic and, recently, the Russia-Ukraine crises”.
Ghanaians in recent months have been feeling the pinch of record inflation and the impact of the Russia-Ukraine war amid cuts in government spending to avoid a full-blown debt crisis.
According to a report by Graphic.com, Ghana’s economy grew by 3.3% in the first quarter of 2022 compared to the same period in 2021 and inflation surged to a record of 27.6% in May.
Aside from this, the country is also grappling with high debt and a depreciating currency, the cedi. A controversial tax on Electronic transactions (E-Levy) which was aimed at relieving some burden off the government is yet to generate any significant revenue.
There was a two-day protest in Accra this week over fuel price hikes, inflation and an economic downturn.
The Arise Ghana group said it wanted the government to cancel the Electronic Transaction Levy (E-levy) immediately and also take steps to reduce inflation and arrest the depreciation of the cedi to help bring relief to the Ghanaian people.
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