Mahama must avoid IMF return to secure legacy – IEA Fellow

Dr. Vladimir Antwi-Danso is a Senior Fellow at the Institute of Economic Affairs (IEA). He has urged President John Mahama to take bold actions. These actions should prevent Ghana from returning to the International Monetary Fund (IMF) after the current program ends.

Dr. Antwi-Danso believes that excessive government spending causes this reliance on the IMF. He noted that spending often increases during election years, which harms fiscal discipline and creates economic instability. “The president has indicated this is a legacy term,” he said. “If it’s a legacy term, he must put things right so we don’t go back.”

He pointed out that this is the 17th time Ghana has sought IMF support. There are no signs that this will be the last time. The spending spree during elections contributes significantly to this cycle.

Dr. Antwi-Danso warned that such spending is not growth-oriented. Borrowing for consumption rather than investment deepens financial vulnerabilities in the country. “During election years, we spend recklessly,” he added.

He called on the Mahama administration to enforce strict fiscal discipline. Structural reforms are also needed to strengthen economic governance and reduce dependency on external support.

Ghana is currently implementing a $3 billion IMF-supported program aimed at restoring macroeconomic stability and achieving debt sustainability. This program is set to end next year.

Some experts suggest extending the program by one or two years. Daniel Kwadwo Owusu, Country Managing Partner of Deloitte Ghana, cited progress made so far and the need to consolidate economic gains.