President John Mahama has told the 69th UN General Assembly that the West African country’s talks with the International Monetary Fund–for a programme that will inspire policy credibility in the country’s economy–could eventually launch Ghana into full middle income status.
The world’s second-largest cocoa producer began talks with the Bretton Wood Institution after the local currency–Cedi–plummeted by about 40 percent.
Mr Mahama said the partnership, which the young oil producing country is seeking with the IMF, holds great potential for the economy of the former British colony.
“Last year when I addressed this august Assembly, I explained that it is not sympathy we want in Africa, it is partnership. The ability to stand on our own feet. In an attempt to establish such a partnership, we have entered into discussions with the IMF.
“Indeed both Ghana and the IMF have evolved and this partnership has the potential to bring about the sort of transformation that will move Ghana from the realms of a low-middle-income country into a fully-fledged middle income one,” he said.
He observed that “like so many African countries, Ghana has been through dark economic times,” but “already the homegrown measures of fiscal stabilisation that we have taken are yielding results.”
“Only this month, Ghana surprised even its most ardent critics when it launched its third Eurobond for an amount of $1 billion. This successful flotation represents a return of investor confidence in the prospects of the Ghanaian economy,” the ECOWAS Chair told the Assembly.
“This confidence is apparent in the recent rebound of our domestic currency the Cedi.
“Over the last two weeks, the Cedi has appreciated significantly against its major trading currencies,” Mahama noted.