IMF bailout: We will emerge stronger than we did in previous programmes – Bawumia

Vice President, Dr. Mahamudu Bawumia has assured Ghanaians that the country will emerge stronger than it did in previous 17 programmes with the International Monetary Fund.

Delivering a lecture at the Accra Business School, he pointed out that Ghana is a different country now because the underlying systems are being dramatically changed through digitalisation and other policies that would transform the structure of the economy.

“We are talking now about a different Ghana. A Ghana that is being rapidly transformed. The underlying systems are being dramatically changed through digitalisation and other policies that would transform the structure of the economy.”

“With enhanced fiscal discipline and structural reforms to restore debt sustainability and growth, we should emerge stronger than we have with the previous 17 IMF programmes”, he stressed.

Speaking on the topic “The Role of Information Technology Education in the Government’s Digitalisation Agenda”, Dr. Bawumia said Ghana has gone to the IMF for a programmes 17 times since independence and after each IMF programme, the underlying system and structure of the economy remained the same.

However, he’s hopeful that after this programme with the Fund, the economy will bounce back stronger because of the digitalisation transformation.

“It is important to note that the focus of economic management by successive governments since independence in Ghana has been on crisis management as a result of factors such as the collapse in commodity prices, increase in oil prices, debt unsustainability, political instability, macroeconomic instability, etc.”

“Governments, have by and large, not focused on building systems and institutions that underpin economic activities in a modern economy. The systems that will reduce bribery and corruption, the systems that will make the delivery of public services efficient, the systems that will enhance domestic revenue mobilisation, and the systems that will make life generally easier for Ghanaians.”

The government last week announced it was seeking an economic support from the IMF, following instability in the economy.

This culminated in the arrival of an IMF team from Washington, DC that have since ended its mission with a statement.

The team said the IMF will continue to monitor the challenging economic and social situation in Ghana closely in the coming weeks and engage authorities in the formulation of Enhanced Domestic Programme that could be supported by a Fund arrangement.