Ghana is facing fresh concerns over its financial stability and independence due to its reliance on repeated economic bailouts from the International Monetary Fund (IMF), according to economist Professor John Gatsi.
Professor Gatsi, who serves as the Dean of the University of Cape Coast Business School, emphasized the importance of Ghana establishing strong financial buffers to withstand economic shocks rather than turning to the IMF at every turn of crisis.
Ghana recently secured its 17th IMF bailout in 2022, receiving a $3 billion Extended Credit Facility (ECF).
However, Professor Gatsi believes that the country should focus on implementing sound economic policies that promote resilience, fiscal discipline, and revenue generation rather than relying on external assistance.
The root of Ghana’s dependence on the IMF lies in persistent fiscal deficits, excessive borrowing, and poor domestic revenue mobilization.
Despite being rich in resources, the country has struggled to maintain macroeconomic stability, leading to rising inflation, currency depreciation, and unsustainable debt levels.
Professor Gatsi attributed Ghana’s recurrent need for IMF support to poor economic management, emphasizing the necessity of enhancing financial buffers across all economic sectors to avoid future reliance on external bailouts.
To achieve economic resilience, Professor Gatsi recommended strengthening domestic revenue mobilization, implementing disciplined fiscal policies, improving debt management, enhancing foreign exchange reserves, and investing in productive sectors such as agriculture, industry, and technology.
While IMF programs offer short-term relief, Professor Gatsi argued that a sustainable economic strategy for Ghana involves proactive economic planning and reducing dependency on external assistance.
By developing the necessary financial buffers and focusing on long-term financial planning, Ghana can break free from the cycle of IMF bailouts and secure a stable, self-reliant economic future.
