Former Finance Minister Seth Terkper expressed confidence that Ghana could successfully renegotiate its programme with the International Monetary Fund (IMF) under a new government. His comments align with the statements of John Mahama, the National Democratic Congress (NDC) flag bearer, who indicated his administration would seek to renegotiate certain terms of the IMF programme.
Mr.Terkper in an interview with The High Street Journal emphasized that the NDC’s successful track record with homegrown policies during its previous administration, suggesting that a future NDC government could revive initiatives abandoned by the current government. These include the Government Integrated Financial Management System (GIFMIS), the Sinking Fund for debt servicing, the Energy Sector Levy Act (ESLA) to address energy sector arrears, and the i-Tax system aimed at automating tax collection and improving domestic revenue mobilization.
The former Finance Minister believes that if the NDC demonstrates a commitment to these programmes, it could renegotiate the IMF programme and potentially unlock additional funding from multilateral partners such as the World Bank and the African Development Bank. He criticized the New Patriotic Party (NPP) government for discontinuing programmes that ensured effective economic management, noting that the IMF is now encouraging the reinstatement of initiatives like tax system automation, GIFMIS enforcement, and setting up an escrow account for restructured debt payments.
Former President Mahama told Reuters that if elected in December, he would work to renegotiate the IMF bailout terms and increase local ownership in future oil and mining projects. Mahama, who served as President from 2012 to 2016, is considered the main challenger to the ruling party’s candidate, Vice President Mahamudu Bawumia, amid a severe economic crisis that has impacted the government’s popularity.
Meanwhile, economist and finance professor Godfred Bokpin has warned that Ghana may face difficulties funding priority sectors after exiting the IMF programme in 2026 due to debt obligations exceeding GH¢130 billion. Renegotiating the programme terms could alleviate these challenges and contribute to stabilizing the country’s economic outlook.
