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Economist and member of the National Economic Dialogue Planning Committee, Professor John Gatsi, has underscored the urgent need for Ghana to establish strong financial safeguards to break its cycle of repeated International Monetary Fund (IMF) bailouts. He believes sound economic management and resilience are essential to ending the country’s dependence on external financial assistance.
Speaking to Citi Business News, Professor Gatsi stressed that Ghana’s persistent return to the IMF stems from poor economic management. “It is not magical for anybody to say we will not go to the IMF again. What has been leading us to the IMF is poor management. If we are able to build the correct buffers for all the sectors, I believe we will be solid,” he stated. Despite gaining independence 68 years ago, the country continues to face economic vulnerabilities, raising concerns about financial sovereignty.
Ghana has sought IMF support 17 times, with the most recent being a $3 billion Extended Credit Facility (ECF) secured in 2022 amid a severe economic downturn. Chronic fiscal deficits, weak domestic revenue mobilization, and rising debt levels have contributed to this continued reliance on external aid. While the current IMF-backed program aims to restore macroeconomic stability and debt sustainability, doubts remain about the country’s ability to permanently wean itself off such interventions.
Professor Gatsi, who also serves as the Dean of the University of Cape Coast Business School, insists that Ghana must build financial resilience to withstand economic shocks rather than seeking IMF assistance at every crisis. “We will not be drifting towards the IMF at the least financial distortions or at the least threat that is directed towards the finances of this country. We will be robust, solid, and we will be relying on the buffers that we build rather than going to the IMF,” he emphasized.
To achieve this, he advocates for disciplined fiscal policies, enhanced revenue generation, effective debt management, and strategic investments in key productive sectors. By implementing these measures, he believes Ghana can establish a more stable and self-sufficient economy, reducing the need for external financial support.
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