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Ghana approaches IMF

Ghana’s president asks finance minister to begin talks with IMF

Ghana’s president asks finance minister to begin talks with IMF
(Photo: EPA-EFE / JIM LO SCALZO)

ACCRA, July 1 (Reuters) - Ghana's President Nana Akufo-Addo has authorized the country's finance minister to begin formal talks with the International Monetary Fund (IMF), the government said on Friday.

The cabinet indicated its support for the decision at a meeting on June 30, following a phone conversation between Akufo-Addo and the IMF’s Managing Director Kristalina Georgieva.

The West African country’s government has until now refused to seek IMF support to redress an economy crippled by rampant inflation, a depreciating currency and debt.

The engagement will seek to provide balance of payment support as part of a broader effort to quicken Ghana’s recovery in the face of challenges induced by the pandemic and the Ukraine war, the statement said.

Hundreds took to the streets in Ghana’s capital Accra this week to protest against spiraling inflation and other woes, as citizens feel the pinch of price hikes amid government efforts to redress the situation. Read full story

Ghana, one of West Africa’s largest economies and the continent’s second biggest gold producer, saw growth slow to 3.3% year-on-year in the first quarter of 2022 and inflation hit a record of 27.6% in May. Read full storyRead full story

The government had consistently ruled out asking the IMF for assistance despite analysts warning it is close to a debt crisis. Read full story

(Reporting by Christian AkorlieWriting by Sofia ChristensenEditing by James Macharia Chege)

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