Former president of the Republic of Ghana, John Dramani Mahama has asked government to consider constituting a national dialogue to brainstorm solutions to revive the ailing economy.
Mr Mahama who made this known inn the early hours of Tuesday, August 9, 2022, noted that “there appears to be no end to the problems with the Ghanaian economy, with the recent downgrade to CCC+/C Junk status”.
He said “The steep depreciation of the Ghana Cedi in recent days, clearly shows that the mid-year review of the 2022 budget failed to win back the confidence of the investor community and the Ghanaian public.
“Unfortunately, no credible remedial plans have been put forward by the government to salvage the economy.”
However, Mr. Mahama believes that setting up “A national dialogue on the economy, bringing some of our best brains together will serve us well, even as we prepare for debt restructuring and negotiation of an IMF programme”.
On Friday August 5 ,2022, the ratings agency Standard & Poor’s lowered Ghana’s local and foreign currency credit ratings to CCC+/C from B-/B, pointing to the government’s “limited commercial financing options, and constrained external and fiscal buffers”.
Meanwhile, in a statement on Monday, August 8, 2022, the finance ministry said Ghana’s worsening economic state had been exacerbated by “global external shocks”, and that various revenue-saving measures introduced at the beginning of the year would soon bear fruit.
“The government is disappointed by S&P’s decision to downgrade Ghana despite the bold policies implemented in 2022 to address macro fiscal challenges and debt sustainability,” the statement said.
“The government is committed and is confident that it will successfully emerge from these challenges in the shortest possible time, as we have demonstrated the track record to do so,” it said.
At the beginning of the year 2022, Moody’s and Fitch both downgraded Ghana. On criticising the work of the rating agencies, the Finance Minister Ken Ofori-Atta stated that the international ratings agencies were institutionally biased against African economies.
Ghana has since been unable to borrow from global capital markets, which the finance ministry and the central bank have partially blamed on the downgrades.