Following the successful fourth review of Ghana’s IMF program, which has unlocked $367 million, a debate has been generated over how best the country can utilize this fund for maximum economic benefit for the country.
The Executive Board of the IMF, earlier this week, approved the fourth review of Ghana’s $3 billion Extended Credit, unlocking another tranche of disbursement. Many economists and analysts have welcomed the milestone, indicating that the disbursement is a good omen for the country’s economic recovery.
But the question is, where should the government deploy the money? Some experts have suggested that the money could be used to continue the strengthening of the cedi for stability.
Amid the conversation, an economist at the University of Ghana, Dr. Adu Owusu Sarkodie, has different ideas. He believes that the government must channel the funds into agriculture and social intervention programmes to deliver real relief to citizens and support economic stability.
The economist says prioritising food security and protection for the poor should top the scale of preference as the government decides how to use the newly released funds.
Agriculture Must Take the Lead
According to Dr. Sarkodie, a significant portion of the IMF cash should be directed towards agriculture. He justifies that Ghana has battled high food inflation in recent years, driven by climate shocks, supply disruptions, and rising input costs.
He believes it is time for the government to ensure that food prices cool through agricultural investments. The disbursement, the economist says, must go into the strengthening of agricultural production to ensure food security, stabilize prices, and reduce pressure on the average Ghanaian household.”
Boosting local food production will also help Ghana reduce import dependence, create jobs in rural areas, build a resilient supply chain, and quicken the pace of the country’s recovery efforts.
Dr. Sarkodie believes investing in key areas such as irrigation, fertilizer support, mechanisation, and storage facilities can make an immediate and long-term impact.
“The sectors that stand out that could get funding or financed by the IMF release could maybe first to Agriculture production because you want to contain food inflation. You don’t want food prices to increase; that must, you want to ensure food security, and so well we advocate that the greater part of it should be channeled to agriculture,” he said in an interview monitored by The High Street Journal.
Cushioning the Poor and Vulnerable (Social Protection)
Beyond agriculture, the economist stressed the need to protect the most vulnerable segments of society, especially as the country continues to adjust key tariffs, taxes, and utility prices under the IMF programme.
With these funds, Dr. Adu Sarkodie says the government must also remember how tough things have been for ordinary people, especially with the frequent increases in electricity, water, and fuel prices.
He suggests that a sizable portion of the IMF funds should be allocated to critical social intervention programmes that directly support the poor, such as: Free SHS (Senior High School), Livelihood Empowerment Against Poverty (LEAP), Capitation Grant, and School Feeding Programme
These programmes have not only offered safety nets for the most disadvantaged Ghanaians but have also been consistently praised in IMF and World Bank reports for helping cushion the effects of economic reforms.
“If you read the documents that have been praising the government of Ghana for securing and cushioning the poor and the vulnerable in society, so all the social intervention programs which have been listed, the free SHS, capitation grant, livelihood empowerment against poverty, school feeding program,” the economist maintained.
He added, “I believe that the other part should go to cushioning the poor and vulnerable in society. You know how tight things have been, especially with the quarterly adjustment of tariffs and the impact on business and us, so agriculture and safety nets should take the lead in terms of which items should be on top of the scale of preference.”
Smart Spending for Maximum Impact
Rather than spreading the funds too thinly across sectors, the economist believes Ghana should strategically focus on agriculture and social welfare, which not only tackle immediate pressures but also lay the foundation for long-term growth and shared prosperity.
For Dr. Adu Sarkodie, the $367 million IMF cash is more than a fiscal boost; it’s an opportunity to restore hope, reduce suffering, and build a stronger economic future. But that will only happen if the right choices are made.
