Dean of the University of Cape Coast (UCC) Business School, Professor John Gatsi, emphasized that Dr. Mohammed Amin Adam, the newly nominated Finance Minister, is constrained to continue with existing economic programs.
According to Prof. Gatsi, considering the limited time remaining for the current government’s term and the approval of the 2024 budget, the new Minister-nominee would have minimal scope to enact significant transformations in the Ghanaian economy, which is grappling with challenges.
Ghana is presently engaged in implementing a $3 billion loan program with the International Monetary Fund (IMF). This initiative aims to restore macroeconomic stability and debt sustainability while establishing a foundation for stronger and more inclusive growth.
“What you cannot do in seven years, you cannot do in 10 months, and even in the 10 months, we’re only going to see governance from now to June. From there, everyone will be actively involved in political campaigns,” Prof Gatsi said.
“He [Dr Amin Adam has been involved in the preparation of the budget, and IMF discussions, so he’s not new to the Fund. The replacement is just a continuation, nothing will change,” the Economist said.
He explained that though the 2024 budget review presented an opportunity for some economic decisions to be made, “that will not bring any change – he [the new Minister] will only continue to drive the vehicle.”
“The reshuffle has come late; it’s not in response to the calls by Ghanaians nor the 98 Parliamentarians, but in response to the Party, therefore, meant for political gains,” he stated.
Prof Gatsi noted that such political decision had been made because some people “are tired and would not commit themselves to vigorous campaigning and resource mobilisation [in the 2024 elections].”
Hence, the reshuffle, including that of the Ministry of Finance, aimed to make way for new individuals, many of whom are expected to exert significant effort and allocate financial resources towards campaigning in hopes of receiving future favors, he noted.
Dr. Mohammed Amin Adam, previously a Minister of State at the Finance Ministry, has been nominated as the Finance Minister designate, replacing Mr. Ken Ofori-Atta, who has held the position since 2017.
His appointment comes at a critical juncture as Ghana is currently implementing a $3 billion loan program with the International Monetary Fund (IMF) to address the challenges facing the country’s economy.
The post-COVID-19 pandemic period has posed severe challenges to Ghana’s economy, with some individuals resorting to lengthy commutes to work due to inflationary pressures.
While recent data from the Ghana Statistical Service and the initial review of the IMF program indicate some signs of recovery, it is acknowledged that more needs to be done.
Macroeconomic improvements have yet to translate into significant improvements at the micro level, where individuals would see enhancements in their incomes and daily lives, and businesses would experience greater ease in operations.