Ghana must go to the International Monetary Fund to help boost investor confidence and rake in money quickly in the short term as the country makes efforts to recover from the economic challenges brought about by the COVID-19 pandemic and the Russia-Ukraine war, economist Ishmael Yamson has suggested.
“So, you then have to ask yourself; in the short term, how do we stabilise the ship? This is a huge ship. Then you can then think about the medium-term and then the long term. Investors lost confidence because they are doubtful that you can service your debt”, he said.
“So, the short term will be finding money quickly, something that will recreate, rebuild the confidence quickly”, he proposed.
“My experience in this country is that the best option would have been to go to the Fund because the Fund will restore investor confidence immediately”.
“Will also give you access to money the two things that you need critically are with the Fund right now”, he noted.
“I don’t think that I am saying this because I don’t respect the position of the government, I respect it. But if you ask me, I will do exactly what I am saying: that, in the short term, I’ll take a Fund programme. Because our history says that there’s no reason why because you have a Fund programme, that says you’re a bad manager of the economy”, he pointed out.
To him, despite the government’s stance on the IMF programme, it could still have a change of mind.
“The people who you succeeded themselves run a Fund programme. You came into office to say you’re exiting, you won’t go back. That, for me, is the challenge”, he observed.
“And I’m saying, yes, maybe at the time you made that judgment, and that statement, you never thought that there will be a Russia-Ukraine war that will create a huge problem for your economy”, he noted.
“I have seen a chart of fuel price increases; we’re just number three in the world. Eighty-something per cent increase, so, you’re faced with a major crisis, I think the immediate reaction will be how do we stabilise this ship.”