Akufo-Addo seeks access to International Capital Market for much-needed funding

Ghana’s President, Nana Akufo-Addo, has expressed his firm belief that Ghana is poised to regain access to the highly coveted International Capital Market. President Akufo-Addo reiterated that this development is of utmost importance for his government to secure the necessary funding required to effectively execute its mandate and drive forward the country’s ambitious economic agenda. The closure of the international capital market to Ghana has been a significant cause for concern, prompting the government to take decisive action to restore access.

During his engagement at the prestigious Qatar-Africa Economic Forum in Doha on May 23, President Akufo-Addo underlined the critical role of reentering the international market, which had previously served as a robust source of funding for Ghana during the initial stages of his administration. The president’s remarks underscored the government’s unwavering commitment to restoring investor confidence and leveraging global financial opportunities to fuel Ghana’s economic growth.

The temporary exclusion from the international capital market has undoubtedly posed challenges for Ghana’s financing needs and economic development. However, with the recent approval of the International Monetary Fund (IMF) bailout, there is renewed hope that Ghana will soon be able to tap into the capital market and access the necessary funds to propel its growth trajectory. The IMF’s support not only provides a much-needed lifeline for Ghana but also signals a vote of confidence in the government’s commitment to implementing crucial economic reforms.

In conjunction with the pursuit of reentry into the international market, President Akufo-Addo highlighted his administration’s firm resolve to embark on rigorous expenditure cuts and revenue mobilization exercises. These measures are deemed essential to streamline the management of Ghana’s resources and minimize wasteful spending, ensuring efficient allocation of funds towards key developmental priorities. The government’s focus on rationalizing expenditure underscores its commitment to prudent financial management and fiscal discipline.

A central pillar of Ghana’s economic agenda revolves around domestic revenue mobilization, as emphasized by President Akufo-Addo. The government acknowledges the pressing need to bolster revenue collection and optimize the country’s fiscal position. With positive signs already emerging in this regard, Ghana is taking proactive measures to strengthen revenue streams and reduce its reliance on external sources. These efforts align with Ghana’s fiscal responsibility law, which sets a target fiscal deficit of 5 percent, underscoring the government’s determination to achieve sustainable fiscal health.

Nevertheless, President Akufo-Addo acknowledged the inherent risks associated with implementing such comprehensive economic reforms. Challenges such as resistance to change, capacity constraints, and potential unintended consequences may arise during the implementation process. However, the government remains resolute in its commitment to address these risks head-on and ensure that the desired level of financial viability for Ghana is achieved.

As Ghana endeavors to regain access to the international capital market, it recognizes the need to demonstrate unwavering commitment to fiscal prudence, responsible financial management, and sustainable economic policies. The government’s efforts to control expenditure, enhance revenue mobilization, and address debt sustainability will be crucial in restoring investor confidence and unlocking new funding opportunities. By showcasing its dedication to sound economic governance, Ghana seeks to reestablish itself as an attractive investment destination and pave the way for sustainable economic growth and development.

Source: Norvanreports