Bokpin applauds gov't IMF stance but warns against complacency

Professor Godfred Alufar Bokpin, an economist at the University of Ghana Business School, has praised the government's approach to managing the economy under the IMF programme. However, he cautioned against becoming complacent.

On Joy FM's Super Morning Show on May 27, Prof Bokpin noted that the government is open to advice. He said, “I think I like this attitude; they are willing to embrace suggestions going forward. It’s a win for Ghana.”

Despite his optimism, he urged caution. He pointed out that past promises from politicians were often unfulfilled.

Prof Bokpin recalled similar statements made during previous IMF programmes. He mentioned that in 2014, a promise was made it would be the last time seeking support. President Akufo-Addo also claimed it would be the last time when he took office.

He stressed that real challenges lie ahead as elections approach in 2028. “The real test is when challenges begin to mount before elections,” he said.

He emphasized the need for fiscal discipline and transparency during this period. These factors will be crucial for managing economic issues effectively.

Prof Bokpin highlighted the importance of auditing and clarifying fiscal data. He stated that current figures are based on preliminary reports and need verification.

He explained that audits will help determine the actual deficit by December 2024. This clarification is essential for accurate financial reporting.

Regarding local borrowing capacity, he advised caution and thorough oversight. “We need to account for these within our public debt frameworks,” he warned.

Despite his concerns, he recognized efforts to accelerate reform milestones. “I will give the government the benefit of the doubt,” he said about fast-tracking structural benchmarks initially set for later dates.

Finally, Prof Bokpin called for clear communication about Ghana’s exit plan from the IMF programme. He believes it’s early days but expects progress on this strategy soon.