Amid the latest IMF Country report questioning the country’s Domestic Gold Purchasing Programme (DGPP), Natural resource governance expert Dr. Steve Manteaw has cautioned Ghana against treating IMF advice as a one-size-fits-all solution.
Dr. Manteaw argues that while the Fund’s concerns are understandable, not every prescription necessarily serves the country’s long-term interest.
Reacting to the IMF’s concerns over the Bank of Ghana’s Domestic Gold Purchase Programme, which has led to the Central Bank incurring a $214 million loss, Dr. Manteaw says Ghana must engage the IMF with confidence, blending external advice with homegrown solutions shaped by local realities.
He noted that the government must be able to draw the line in its dealings with the Bretton-Woods institution.
“I’d like to point out that, not all IMF prescriptions are in our interest. We ought to recognise that we are the reason they exist,” he bluntly indicated.
IMF Concerns Are Valid, But Not Absolute
In his justification for his strong stance, Dr. Manteaw acknowledges why the IMF is uneasy about Ghana’s reliance on commodity exports, including gold, to support the local currency.
He admits that, indeed, commodity prices are volatile, and global downturns can quickly weaken foreign exchange inflows.
However, he warns against abandoning strategies that are working simply because they do not fit neatly into IMF models. In his view, Ghana’s task is not blind compliance, but a smart balance.
Use the Windfall to Fix Structural Weaknesses
To sustain the gains from the domestic gold programme, Dr. Manteaw recommends that Ghana channel part of the current foreign exchange windfall into strengthening domestic production.
Producing more locally, he argues, reduces demand for foreign currency and eases pressure on the cedi.
He points out that this approach is not new. Past leaders such as Kwame Nkrumah and Ignatius Acheampong pursued similar ideas under what was known as import substitution, producing locally what the country previously imported.
“It is imperative to use part of the current windfall to support domestic production in order to reduce demand for forex (both Nkrumah and Acheampong called it “Import Substitution,” he recommended.
Food Production Must Be a Priority
One of his strongest recommendations is renewed support for food production.
Ghana spends heavily on food imports, draining scarce foreign exchange. By boosting local agriculture, the country can cut imports, stabilise food prices, and protect the currency at the same time.
“We should again support food production to reduce food imports,” he added.
Dr. Manteaw also calls for a shift away from exporting mainly raw materials. Ghana, he says, must expand into finished and semi-processed goods that earn more value on the global market and reduce vulnerability to price swings.
Taking IMF Advice Without Losing Sovereignty
In a striking comparison, Dr. Manteaw reminds Ghanaians that powerful economies chart their own paths. Countries like Saudi Arabia and the United Arab Emirates, he notes, do not stabilise their currencies with goodwill or theory, but with hard-earned export revenues from oil.
He said, “We will take their advice, but let’s blend it with our own ideas, afterall, the Saudis and the Emiratis do not shore up their currencies with chocolate but with dollars earned from their oil exports.”
Ghana, he says, should listen to the IMF, but must also know when to draw the line.
