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Ghana to make U-turn and ask IMF for help for its economy

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Ghana, one of West Africa’s largest economies, will hold formal talks with the International Monetary Fund (IMF) on a support package, the government has said, only days after hundreds took to the streets protesting mounting hardship.

The cabinet gave its support for the decision at a meeting on Thursday, following a phone conversation between President Nana Akufo-Addo and IMF Managing Director Kristalina Georgieva. Until now, Ghana, the continent’s second-biggest gold producer, had refused to seek IMF support to rescue an economy crippled by the pandemic, rampant inflation and a depreciating currency, despite analysts warning it is close to a debt crisis.

The IMF did not immediately respond to a request for comment.

Analysts said the decision should help Ghana deal with its challenges.

“Positive news – given the succession of external shocks, and the increasing challenges for Ghana’s economy,” tweeted Razia Khan, chief economist for Africa and the Middle East at Standard Chartered.

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*The views of the above article are those of the author and do not necessarily reflect the views of Africa Speaks 4 Africa or its editorial team.

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