President Nana Addo Dankwa Akufo-Addo has disclosed that Ghana will return to the international capital market to borrow in order to fund infrastructural projects.
According to him, recent approval of the $3 billion loan facility from the International Monetary Fund and the successful implementation of programme initiatives will set the path for the country to re-enter the international capital markets after it earlier shut out.
Speaking during a panel discussion at the 2023 Qatar-Africa Economic Forum in Doha, President Akufo-Addo, however, admitted that government was in no rush to return to international capital market but it will be prudent for the country to take advantage of the market in order to make global savings.
“We have positioned ourselves to be able to go back into the international market which had been a source of funding for us during the first three or four years of our government.
There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme,” President Akufo-Addo said.
He further disclosed that government will begin rigorous expenditure cuts as part of efforts to meet the conditionalities contained in the IMF-supported programme.
“Rationalisation of our expenditure, rationalisation of government expenditure is something that we have given the assurance. Domestic revenue mobilisation is absolutely critical for us, and already we are seeing signs.
He continued, “We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5 percent but already we are way above that and the sooner we can bring that to more acceptable levels the better for us.”
Meanwhile, Finance Minister Ken Ofori-Atta had earlier stated that Ghana was not in a hurry to return international capital market for borrowing.
“There is no rush in going back to the international capital market. Our expectation is that, by managing our expenditure and increasing our revenue, we will have the resources to address our needs,” Ken Ofori-Atta earlier said.
MA/FNOQ
