'Early IMF exit makes for great optics, bad economics' – Bright Simons warns of premature celebration

Bright Simons, Vice President of IMANI Africa, criticized the government's early exit from the IMF program. He called it a “classic case of good optics, bad economics.”

Simons spoke on Joy News’ PM Express Business Edition on April 24. He accused both the government and the IMF of prioritizing appearances over substance.

“If the IMF celebrates, the government will join them,” he said. He warned that by 2028, targets may still not be met.

He believes leaving the program does not mean real fiscal consolidation. “Without the program, we must ask if we needed it to meet targets,” he stated.

The targets remain important even after exiting the IMF's oversight. Simons argued that this exit undermines the program's true purpose.

“If the IMF wanted us to reach those targets, they should have supported an extension,” he said.

Instead, he claimed that the IMF focused on public perception rather than practical implementation.

“The signaling is not pretty; they’ve prioritized it over facts,” he added.

Simons warned that the government might exploit this reduced scrutiny. They could end the program for more flexibility but risk losing sight of IMF targets.

He cited Kenya as an example of this mindset. “Kenya ended their program early and raised $1.5 billion from the Gulf,” he noted.

He also mentioned Nigeria never signed up for a program at all. Now Ghana seems to be following a similar path.

In Simons’ view, this approach is short-sighted. “The IMF program doesn’t bring much money but provides discipline,” he explained.

He cautioned that relying solely on market access can be more expensive in the long run.

Describing the exit as largely symbolic, Simons said it’s irrelevant now. “We’re ending this program not because we achieved our goals but to claim victory.”

He believes that such actions should not be rewarded by the IMF. As they prepare for a celebratory sign-off, Simons insists hard work remains necessary.

“Ending the program doesn’t solve our problems,” he concluded. “Markets will remind us soon enough if fundamentals are weak.”