Bussiness
Ghana need IMF badly, return to Fund will improve government’s fiscal position – Deloitte
Auditing and accounting firm, Deloitte Ghana, has indicated that Ghana’s return to the IMF is expected to improve the government’s fiscal situation and re-instill investor confidence.
It therefore says the government need the Fund’s programme badly.
“Based on history, the fund may require government to improve revenue which may be in the form of new taxes, which is likely to worsen the plight of Ghanaians especially within this current economic climate”, it stated in its review of the 2023 Budget.
Some conditionalities may require government to implement expenditure cutting measures including halting new employment and ongoing & new capital projects in the public sector.
This, it said has the effect of curtailing government’s ability to create jobs, which will further worsen the plight of the theming unemployed youth, if not properly managed.
Deloitte Ghana further said that the IMF programme is expected to increase the country’s foreign currency reserves and help stabilise the value of the local currency, thereby reducing imported inflation.
In addition, it pointed out that the policy credibility and the boost in investor confidence
associated with the programme is likely to reopen the international capital market
to Ghana under more favourable conditions going forward.
In July 2022, the government commenced engagement the IMF in a bid to secure funding and support to alleviate the current economic challenges the country is facing.
The government has since held two rounds of negotiations with the IMF and the third round of negotiations is expected to be held before the end of the year.
The first round of negotiations focused on a preliminary fiscal adjustment path
debt strategy; and financing required for the programme in line with Post- COVID-19 Programme for Economic Growth (PC-PEG).
The second round was centered on fiscal consolidation path Debt Sustainability Analysis (DSA) and debt management strategy.
The final one will be hinged on structural reform benchmarks, prior actions, performance criteria on key macro-fiscal indicators among others.
Source: Joy Business
Ghana’s gold and minerals sector is set for a major spotlight as Meetings. Co, in partnership with key industry stakeholders, announces the Mining & Minerals Convention 2025, scheduled from August 26-27, 2025, at the Kempinski Hotel Gold Coast City, Accra.
Held under the theme “Shaping the Future of Ghana’s Gold Industry,”‘ the Convention will convene government leaders, regulators, miners, refiners, investors, sustainability partners, innovators, and responsible mining, and global competitiveness,policy experts to explore strategies that position Ghana’s gold industry for long-term growth.
The two-day convention will feature presidential and ministerial keynote addresses, industry thought leadership, technical paper presentations, policy dialogues, fireside chats, exhibitions, and high-level networking sessions.
Convention delegates can anticipate a dynamic and insightful experience, marked by thought leadership from leading policymakers and regulators, in-depth discussions on key topics such as sustainability, ESG, digital gold, and responsible sourcing, as well as valuable opportunities to forge public-private partnerships and investment deals.
Moreover, the event will offer practical action points aimed at unlocking greater economic value for Ghana.
The 2025 edition will be supported by a strong coalition of strategic partners, including the Ministry of Lands and Natural Resources, the Minerals Commission, GoldBod, the Minerals Income and Investment Fund (MIIF), and the Ghana Extractive Industries Transparency Initiative (GHEITI).
The Minister for Finance Hon. Cassiel Ato Forson has disclosed that a sum of nine hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due to the DACF.
Furthermore, the Finance Minister informed the House that a total amount of Two Billion, Thirty- Three Million, Four Hundred and Sixty-Nine Thousand, Six Hundred and Seven Ghana Cedis (GHS2,033,469,607) has been disbursed to the National Health Insurance Fund.
While the Ghana Education Trust Fund has also received a total of Two Billion, Seven and Ten Million, Two Hundred and Twenty-Seven Ghana Cedis (GHS2,710,227,947.00) for the months January, February, March and April,2025.
The Finance Minister disclosed this in his statement to Parliament on the payments to statutory funds on the floor of the House.
In addition, he cautioned that the Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.
He added that Members are encouraged to monitor the utilization of these amounts sent to their respective Assemblies in line with the approved guidelines by Cabinet.
In his closing remark, Ato Forson said he’s going to take the concerns of the House seriously.
For his part, the Majority Leader, Mahama Ayariga made known the President’s prioritization of women in the country stating that President Mahama is “Pro-women”.
This is due to the fact that women are going to be the core beneficiaries from the expenditures going to be made by the MMDA’s, he added.
The Minority Leader Alexander Afenyo-Markin questioned the Finance Minister why road contractors have not been paid for more than five months. He said the Minister must not be applauded for since the allocation of these funds were long overdue.
