Article author:
Reuters
ACCRA — Ghana's President Nana Akufoad has approved the State's Finance Minister to begin formal talks with the International Monetary Fund (IMF), the government said Friday.
The Cabinet expressed support for the decision at a meeting on June 30, following a telephone conversation between Akfoad and IMF Managing Director Cristalina Georgieva.
West African governments have traditionally refused to seek the IMF's help to remedy economies dysfunctional due to sharp inflation, currency depreciation and debt.
Engagement provides balance of payments support as part of a broader effort to accelerate Ghana's recovery in the face of the challenges posed by the pandemic and the Ukrainian War. The statement said it was aiming for.
This week, hundreds of people went to the streets of Accra, the capital of Ghana, to protest inflation and other issues. Citizens are feeling a pinch of price increases as the government tries to improve the situation.
In Ghana, one of West Africa's largest economies and the second largest gold producer on the African continent, growth slowed to 3.3% year-on-year in the first quarter of 2022, 5 Monthly inflation reached a record high of 27.6%.
Despite analysts warning that the debt crisis is near, the government has consistently ruled out seeking help from the IMF. (Report by Christian Akorlie, written by Sofia Christensen, edited by James Macharia Chege)
