Can Ghana truly break free from the IMF?

President John Dramani Mahama’s declaration that Ghana must not return to the International Monetary Fund (IMF) has reignited a national debate about economic independence, fiscal discipline, and political credibility.

For many Ghanaians, IMF programmes have become a painful cycle, emergency bailouts followed by austerity measures that strain households, weaken social services, and slow development. The ambition to stand on our own financial feet is therefore noble. But the real question is: how possible is it, and what must be done to make it a reality?

How possible is staying away from the IMF?

In principle, Ghana can manage without IMF support if the economy is stable, revenues are strong, debt is sustainable, and public spending is disciplined.

Countries that avoid IMF programmes usually have strong domestic revenue mobilisation, controlled public sector wages and subsidies, stable currency and inflation, credible institutions that enforce fiscal rules, and low levels of corruption and waste.

Ghana, however, has historically struggled in these areas. Heavy borrowing, election-year overspending, energy sector debts, weak tax collection, and exchange rate pressures have repeatedly pushed the country back to the IMF for balance-of-payment support and policy credibility. Therefore, avoiding the IMF is possible, but only with deep structural reforms and political discipline, not slogans.

What must be done to achieve this objective?

Fiscal Discipline and Spending Control: Government must live within its means. This means cutting wasteful expenditures, reducing excessive government size, controlling public sector wage growth, and eliminating politically motivated spending sprees, especially during election years.

Domestic Revenue Mobilisation: Ghana must broaden its tax base rather than overburden the same formal sector workers and businesses. Digitisation of tax systems, tackling tax evasion, and formalising the informal sector can significantly improve revenue.

Industrialisation and Export Growth: A stronger productive economy reduces dependence on borrowing. Value addition in agriculture, mining, manufacturing, and technology can grow exports, earn foreign exchange, and stabilize the cedi.

Debt Management and Borrowing Discipline: Loans should only be contracted for productive projects with clear economic returns, not consumption or political prestige projects. Transparent debt management is critical.

Strengthening Institutions: Independent institutions such as the Auditor-General, procurement authorities, and anti-corruption bodies must be empowered to enforce accountability without political interference.

Reckless spending, corruption, and discipline

No economic promise can succeed if reckless spending, corruption, and weak discipline persist. Leakages through inflated contracts, judgment debts, procurement abuse, and ghost projects drain billions of cedis annually.

Corruption not only wastes resources but also discourages investors and weakens public trust. Fiscal discipline must start from the top; political leaders must demonstrate restraint, transparency, and respect for public funds. Without this cultural change in governance, any pledge to avoid the IMF will remain rhetoric.

Can Ghana truly manage without the IMF?

Yes, but not under business-as-usual politics. Ghana has the natural resources, human capital, and entrepreneurial energy to sustain itself. What has been lacking is consistent policy implementation, continuity, and political honesty.

The experience of the NPP government is instructive. They promised Ghanaians that Ghana would never return to the IMF, yet economic pressures, debt accumulation, and fiscal slippages forced a return. This highlights that political promises alone cannot override economic realities.

Conclusion

President Mahama’s vision of keeping Ghana away from the IMF is commendable and patriotic. However, achieving it requires more than declarations. It demands tough reforms, fiscal discipline, anti-corruption enforcement, productive investments, and national consensus beyond party politics.

If Ghana continues reckless spending, tolerates corruption, and prioritises short-term political gains over long-term stability, the IMF door will always remain open, whether we like it or not. True economic independence must be built on discipline, integrity, and responsible leadership.