Accra, March 6, 2025 – Economist and National Economic Dialogue Planning Committee member, Professor John Gatsi, has stressed the urgent need for Ghana to establish strong financial buffers to break free from its cycle of repeated International Monetary Fund (IMF) bailouts.
Speaking to Citi Business News, Professor Gatsi emphasized that prudent economic management and financial resilience are essential to ensuring Ghana’s economic independence.
“It is not magical for anybody to say we will not go to the IMF again. What has been leading us to the IMF is poor management. If we are able to build the correct buffers for all the sectors, I believe we will be solid,” he stated.
Ghana’s IMF Bailout History
Ghana has sought IMF assistance 17 times, with the latest being a $3 billion Extended Credit Facility (ECF) in 2022 due to a severe economic downturn. Persistent fiscal deficits, inadequate domestic revenue mobilization, and rising debt levels have made the country vulnerable to external financial interventions.
The current IMF-backed program aims to restore macroeconomic stability, ensure debt sustainability, and drive inclusive growth. However, concerns remain about whether Ghana can permanently end its dependence on external financial assistance.
Building Financial Resilience
Professor Gatsi, who is also the Dean of the University of Cape Coast Business School, insists that Ghana must develop strong economic safeguards to withstand financial shocks without turning to the IMF.
“We will not be drifting towards the IMF at the least financial distortions or at the least threat that is directed towards the finances of this country. We will be robust, solid, and we will be relying on the buffers that we build rather than going to the IMF,” he emphasized.
He outlined key measures Ghana must adopt to build these buffers, including:
✅ Disciplined fiscal policies to control government spending.
✅ Enhanced revenue generation through improved tax policies and resource mobilization.
✅ Effective debt management to reduce borrowing pressures.
✅ Strategic investment in productive sectors to drive economic growth.
The Path Forward
Economic analysts agree that reducing dependency on external financial aid requires bold policy decisions, long-term planning, and consistent economic discipline.
As Ghana moves forward, the focus will be on strengthening domestic financial systems, boosting industrialization, and ensuring that economic policies foster resilience rather than crisis-driven interventions.
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