UK lauds Ghana's progress under IMF deal

The United Kingdom (UK) Minister of State for Development and Africa, Andrew Mitchell, has expressed delight with the successful review of Ghana’s International Monetary Fund (IMF) bailout programme and subsequent disbursement of a US$600million second tranche.

He said this development highlights resilience and progress in returning the economy to a path of growth in the face of challenges.

Speaking during a meeting with Vice President Dr. Mahamudu Bawumia, as part of the 9th UK-Ghana Business Council (UK-GBC) in Accra, Mr. Mitchell commended Ghana’s efforts while urging government to adhere closely to conditions outlined in the IMF programme.

“The UK-GBC is the foundation of our economic trade and investment partnership with Ghana. Since its establishment in 2018, we’ve witnessed a commendable boost in trade, investment and the forging of stronger partnerships; laying a robust foundation for growth,” he said.

Acknowledging difficulties faced by Ghana’s government in adhering to condition of the IMF programme, he conveyed the UK’s support for the programme’s reforms, saying: “We understand it has not been easy, which is why we are backing you to stick with conditions of the IMF programme this year. By doing so, Ghana can continue to alleviate the economic pressures its citizens face”.

He mentioned that there are several ways the British government can support economic growth, citing for example the long-established partnership between central banks, tax authorities and statistical agencies of the two countries,

Mr. Mitchell also disclosed that the UK is in the process of designing a new programme to support Ghana’s long-term economic and financial stability. As part of this partnership, he indicated, officials from two countries have already been engaging.

In the UK’s recent roadmap for international development white-paper, he said, there is an emphasis on the importance of modern equal partnerships that go beyond aid to deliver mutual benefits. “Here in Ghana, with these partnerships and the UK-GBC, I believe we are ahead of others.

“The economic context of our discussions has been challenging over the last few years. But let me assure you that Britain will continue to support Ghana. We will deepen mutual trade and investment opportunities, creating more jobs and prosperity,” he added.

He further said the value of trade between the two countries currently stands at £2.1billion, representing a £647million increase compared to the previous year.

For his part, Vice President Dr. Bawumia acknowledged the growing cooperation in mutually beneficial areas of trade and investment between Ghana and the UK.

He envisioned that the 9th UK-GBC meeting will further enhance bilateral and economic relations as well as strengthen strategic partnerships in various areas. “A platform such as this aims at boosting economic and commercial relations between our two countries, and is most encouraging,” he added.

Against this backdrop, he expressed optimism about the prospects of trade relations between the two countries going forward – while alluding that there have been tremendous improvements since the start of UK-GBC.

These have been in areas of cooperation such as agro-processing, garments and textiles, pharmaceuticals, roads and airport infrastructure, among others.

Dr. Bawumia further acknowledged the support received through UK-GBC to identify new investment opportunities and support the country’s economic recovery plan.

He emphasised that Ghana is still one of the most appealing business destinations in Africa for foreign direct investment (FDI). With the African Continental Free Trade Agreement (AfCFTA) in effect, trading activities are expected to increase – leading to economic growth with Ghana being the access point to a population of 1.3 billion Africans.

Despite the economic challenges, he said, Ghana’s positive growth projections can facilitate the expansion of trade and investment activities with strategic partners. Given this, he anticipates that UK businesses and the investor community can leverage Ghana’s environment and foundation to increase the momentum of such exchanges.