Report by Joycelyn Adoma Arthur- 28/02/2024
President Nana Addo Dankwa Akufo-Addo has expressed his satisfaction with the significant progress made by the country in various areas.
Addressing the State of the Nation at Parliament House on Tuesday, President Akuffo-Addo particularly emphasized the successful debt restructuring efforts and notable improvements in the macroeconomy.
President Akufo-Addo commended the unprecedented participation of bondholders in a voluntary exchange, resulting in a successful exchange of GH¢203 billion ($37 billion) worth of bonds. This achievement not only facilitated the shortest debt restructuring time in recent history but also secured a Staff Level Agreement to an Executive Board Agreement with the International Monetary Fund (IMF).
“Not only was the exchange successful, but it helped us to secure within five (5) months, the shortest possible time in recent debt restructuring history, a staff level agreement to an executive board agreement with the IMF.”
The President extended his gratitude to all financial sector players, regulatory institutions, organized labor, firms, and individuals whose contributions ensured the success of the debt restructuring process.
Highlighting the government’s commitment to resolving the external debt restructuring process promptly, President Akufo-Addo expressed optimism that this would allow for the completion of projects that have faced financial constraints. To ensure the continuation of priority projects, some have been transferred to the Government of Ghana’s budget within the same fiscal space.
Projects such as the Kumasi International Airport, currently at 98% completion, are expected to be finalized by May. Additionally, the completion of the Komfo Anokye Teaching Hospital (KATH) Maternity Block in Kumasi, the Takoradi Interchange, the Obetsebi-Lamptey Interchange in Accra, and the University of Environment and Sustainable Development Project at Bunso in the Eastern Region are also on track.
President Akufo-Addo also announced the successful acquisition of alternative funding for the reconstruction and completion of the La Hospital Project. The fully functional modern hospital, equipped with state-of-the-art diagnosis and treatment facilities, has received an advance mobilization payment of $7.5 million. The project, which commenced in January, is expected to be completed within 28 months.
Addressing concerns about recent changes in the leadership of the Finance Ministry, President Akufo-Addo reassured the public that the government remains steadfast in implementing the agreed-upon terms with the IMF to restore the economy to healthy growth.
“It is important to underline that the recent change in the leadership in the finance ministry will not affect government’s commitment to implementing the terms agreed with the IMF to end sure that we restore the economy to the healthy growth as soon as possible.”
The President’s address highlighted positive macroeconomic indicators, indicating a stronger economy compared to the previous year. Inflation has significantly decreased from 54.1% in December 2022 to 23.5% in January 2024. Real GDP growth for the first three quarters of 2023 exceeded the targeted growth rate, reaching 2.8%. The Ghanaian cedi has remained relatively stable since February 2023, with a cumulative depreciation of 9% between February and December 2023. Gross International Reserves have also witnessed a significant increase, reaching $5.9 billion, which covers 2.7 months of imports.
