A leading member of the New Patriotic Party (NPP) Gabby Asare Otchere Darko has dropped hints of Ghana possibly going to the International Monetary Fund (IMF) for an economic bailout.
In a series of tweets Monday morning, President Akufo-Addo’s cousin revealed that the much-touted Electronic Transaction Levy (E-Levy) that was expected to inject some capital into the economy has delivered only 10 percent of the targeted revenue.
According to him, E-levy was expected to rake in some 600 million cedis by now after its implementation but has so far delivered only 60 million cedis.
Ghana is reeling under a severe economic crisis as fuel and cost of other products have tripled since the beginning of the year. The situation has been compounded by the Russia-Ukraine war which has recently been highlighted by the NPP government as the single major contributory factor to the skyrocketing fuel prices in Ghana, like other African countries, which has consequently affected the price of general commodities including food.
Mr Otchere Darko added that he is not against an IMF programme in principle but against a programme that will impose crippling sanctions that will hit the poor Ghanaian hard.
After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar…
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
There’s, understandably, a national aversion to an IMF program, because of the history of conditionalities which attack sacred cows like jobs and social interventions. Akufo-Addo will not sacrifice free SHS and other critical welfare policies to help the poor for any assistance.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Ghana is a member of the IMF. The world is in serious crisis. Ours is not helped by our high debt and low income levels. With the economy still growing, but investor confidence low, govt being compelled to cut down capital expenditures will eventually lead to job losses unless…
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
I am not for an IMF program that throws peanuts at us but imposes conditions that will end up hurting the poor, jobs and businesses more. Covid-19 and War in Ukraine are not of Africa’s doing but more to our doom. A program that pretends it is all our doing is doomed to fail.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Am I against an IMF program in principle? No.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Source: Ghana/Starrfm.com.gh/103.5FM