IMF conditionalities should not affect industry, key sectors – AGI pleads

IMF bailout to shore up foreign reserves

Decision to go to IMF unfortunate, AGI

Ghana will come out stronger, Mohammed Awal

The Association of Ghana Industries, AGI, wants government to ensure that conditions that will be required under an IMF program do not affect the economy.

Chief Executive of the AGI, Seth Twum-Akwaboah, of Ghana

Read full articleIndustries (AGI) said the International Monetary fund imposes some expenditure restrictions on countries that include expenditure cuts.

However, he believes that these conditions should not affect productive sectors of the economy.

“We know the general framework of the IMF. They will ensure that you have a certain level of discipline with respect to expenditure and revenue. The point we want to make however is that you can’t compromise on expenditure that supports areas like manufacturing, industry, and the agricultural value chain connected to the industry.”

“We need to take the needed steps to resuscitate industry and agriculture and make sure that our productive sector works well. In the negotiations, I’m sure some funds will be made available in the negotiations. And these are the areas they have to look at,” he added.

The AGI had earlier noted that even though the decision to go to the IMF is unfortunate, Ghana had no choice.

The decision to seek financial assistance from the Bretton Woods institution according to the government is to help shore up the country’s foreign reserves, stabilize the cedi, continue smooth payments for imports (petroleum products, pharmaceuticals, and medical equipment, among others) and restore conditions for strong economic growth (including support for government flagship programs) while correcting underlying problems.

Meanwhile, Minister for tourism, Arts, and Culture, Mohammed Awal, has backed government’s decision to seek an IMF bailout.

According to him, the country will come out “stronger” after the completion of the program.

Speaking at a forum in Accra, Mohammed Awal said “going to the IMF is the best decision we can take, especially at this time. It will help us have access to international funds to continue to develop our economy and make our country great again.”

SSD/FNOQ