Accra, Ghana – Ghanaians across various sectors are anticipating significant improvements in key economic indicators, including stable utility tariffs, a steady exchange rate, and a reduced cost of living, following the nation’s successful conclusion of its latest International Monetary Fund (IMF) Extended Credit Facility (ECF) program last week. The country has now transitioned to the IMF’s Policy Coordination Instrument (PCI), a non-financing program that maintains IMF oversight on government policies.
Public Hopes Amidst Economic Transition
The conclusion of the ECF program has ignited widespread public expectation for tangible economic relief. Despite the IMF’s announcement, concerns linger about the economy’s underlying fragility. Ghanaians, who have reportedly made considerable sacrifices, are looking for the exit from the IMF program to translate into improved livelihoods rather than a further deterioration of economic conditions.
Interviews with business owners, traders, the working class, and students reveal a shared focus on three critical economic indicators: utility tariffs, the cost of living, and exchange rate stability. These areas represent the most direct impact of economic policies on daily life and business operations.
Business Sector Demands Stability and Tax Relief
The business community, in particular, is voicing strong expectations for an end to the economic pressures they have endured. Francis Ackon, a spare parts dealer at the Abossey Okai market, highlighted the sacrifices made, including new taxes and increased utility bills. “With the exit from the IMF, I, and indeed many from the business community expect improvements without further tax burden on businesses,” Ackon stated.
Concerns about the exchange rate are paramount for importers. Francis Peprah, another spare parts dealer, noted recent stability but also vulnerability in the currency. “The exchange rate has seen stability, but it has also showed vulnerability, as we have seen some decline lately. For us importers, this is key and our expectation is that the IMF exit should not lead to a sharp decline. We also do not expect to be slapped with further taxes,” he said.
This sentiment was echoed by other importers who emphasized the need for a predictable exchange rate environment and a moratorium on new taxation to foster business growth and investment.
Households Focus on Cost of Living and Utilities
For petty traders and households, the primary anxieties revolve around the high cost of electricity and the general cost of living. Elizabeth Boadu, who operates a salon in Osu, Accra, described electricity as a major operational expense. “Over the last year, the cost of my consumption has nearly doubled for the same things I use so I hope we don’t see further increase as the government exits the IMF,” she expressed.
The rising cost of living is a persistent complaint among the general populace. Francis Azuma, a public sector worker, lamented that despite discussions of economic gains, daily expenses continue to climb. He urged the government to ensure that any achieved economic improvements are reflected in the quality of life for citizens.
Students also voiced their frustrations. Francis Amenyo, a student, questioned the tangible benefits of IMF programs if they do not alleviate the financial burden on citizens. “What is economic gain if it’s not reflected in cost of living and livelihood? We are paying for more transport fares than before and we are paying more utility bills than before. So what’s the point in going to the IMF and registering all these economic indicators only for cost of living to keep going up?” he argued.
Looking Ahead: Stability and Sustainable Growth
The transition to the PCI signifies a new phase for Ghana’s economic management, with the IMF continuing to provide policy advice and surveillance. The public’s expectations are clear: a period of sustained stability in essential services and prices, coupled with policies that support economic growth without placing additional burdens on businesses and households. The coming months will be crucial in determining whether these expectations translate into a tangible improvement in the economic well-being of Ghanaians.
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