Ghana’s President-elect John Dramani Mahama Pledges to Review IMF Deal, Prioritize Spending Efficiency and Energy Reforms

 Ghana's President-elect, John Dramani Mahama, has reaffirmed his commitment to maintaining the country’s $3 billion rescue package with the International Monetary Fund (IMF). However, he has indicated plans to review the agreement to curb wasteful state expenditures and revitalize the energy sector.

In an exclusive interview with Reuters, Mahama, who secured a decisive victory in the December 7 elections, outlined his priorities, including addressing inflation and stabilizing the currency to mitigate the ongoing cost-of-living crisis in the West African nation.

Economic Challenges Amid Recovery

As the leader of the world’s second-largest cocoa producer, Mahama inherits an economy emerging from its most severe crisis in decades, marked by instability in the critical cocoa and gold sectors. While the IMF deal has successfully reduced inflation and restored economic growth, Mahama emphasized the need for further measures to alleviate economic hardship.

“The economic situation is dire, and I am fully committed to addressing it. I will dedicate my energy and efforts to improving the lives of Ghanaians,” Mahama stated.

Focus on Expenditure and Tax Reforms

Mahama criticized the “multiplicity of taxes” introduced under the IMF program, describing them as detrimental to the business environment. He also highlighted the need for stricter oversight to eliminate unnecessary expenditures.

“We believe the IMF has not exerted enough pressure on the government to cut wasteful spending. A review will aim to reduce such expenses, including those within the president’s office,” Mahama asserted. “If the president is asking citizens to tighten their belts, he must lead by example.”

Mahama disclosed that the IMF has agreed to expedite its next mission to Ghana for a regular review of the program. Discussions will focus on finalizing debt restructuring efforts and refining the agreement to align with Ghana’s economic needs.

Resolving the Energy Crisis

A significant portion of Mahama’s agenda involves addressing challenges in Ghana’s energy sector, particularly the financial instability of the Electricity Company of Ghana (ECG). He warned that unresolved issues could lead to prolonged power outages.

“The energy sector is at a critical juncture. The ECG is the weak link in the value chain, and we must act swiftly to rehabilitate it,” he explained.

Mahama’s incoming administration, bolstered by his party’s majority in parliament, faces the dual task of stabilizing Ghana’s economy and implementing reforms to ensure sustainable growth and development.