Extend IMF programme, it has brought Ghana numerous gains – Deloitte Boss to govt

Daniel Kwadwo Owusu, the Country Managing Partner of Deloitte Ghana, has made a suggestion. He urged the government to extend the IMF programme by one or two years. He believes this is necessary due to the gains Ghana has achieved.

Ghana joined an IMF bailout programme in May 2023. The country secured a $3 billion Extended Credit Facility (ECF) to stabilize its economy. This programme is set to end in June 2026.

At the 9th Ghana CEO Summit, Mr. Owusu highlighted some benefits of the programme. It has increased investor confidence, both domestically and internationally. He noted that it has also brought fiscal discipline, which Ghana struggled with before.

He mentioned that despite past turbulence, the economy showed resilience in 2024. It grew at a rate of 5.7%, mainly driven by mining and quarrying.

Mr. Owusu emphasized the need for economic restructuring. This is essential for creating decent jobs and increasing government revenue. He supports the President’s idea of a reset for these reasons.

He expressed concern about over-reliance on the services sector. This reliance may not generate enough jobs for graduates entering the labor market. The World Bank estimates that over 150,000 students graduate from universities each year.

To address this issue, he called for bold plans to create job opportunities. He also urged the government to implement agriculture programmes outlined in the 2025 Budget. Initiatives like ‘Feed Ghana’ and ‘Feed the Industry’ are crucial for food security and job creation.

These policies should have clear strategies and timelines for success, he added.

On balance of payments, Mr. Owusu warned about potential impacts on reserves when servicing external debt begins in May 2026. This could affect foreign reserves and weaken the cedi.

He praised the government's efforts but stressed that reserves must continue to grow. Relying solely on cocoa as a cash crop is not sustainable long-term.

He suggested diversifying non-traditional exports by targeting crops like oil palm and cashew nuts. These could become significant sources of foreign exchange earnings.

Regarding inflation, he noted that if cedi stability continues, inflation might gradually decline towards an