Life Beyond 18th IMF Program: Finance Expert Proposes 3 Things Ghana Must Do to Stay on Course

As Ghana gradually nears the end of its 18^th IMF Bailout Program, some experts have begun showing concern about life after the current IMF program.

This concern stems from the persistent cycle where the country maintains both monetary and fiscal discipline under an IMF program but immediately reverts to the old bad ways after the end of the bailout program.

To address this vicious cycle, a leading financial expert says the country must urgently tackle three critical areas to avoid sliding back into crisis. He thinks policy consistency, enforcement of laws, and expansion of investment opportunities beyond Ghana are very critical to enable the country to stay on the right economic path even after the expiration of the program.

Speaking at the UPSA Law School–ABSA Quarterly Banking Roundtable, Yaw Appiah Lartey, Financial Advisory Partner at Deloitte Ghana, gave a sobering but practical roadmap for staying on course when the IMF exits and the country is left to steer its own economic destiny.

Policy Consistency: Stop the Start-Stop Approach

According to Lartey, Ghana’s habit of constantly changing tax policies and reversing previous governments’ decisions undermines investor confidence and makes it difficult for businesses to plan.

He says the practice where a new government comes in, scraps almost all tax handles and then, over time, introduces new taxes is not reform since it brings confusion.

Inconsistent policies, especially on taxation, make long-term planning impossible for local businesses and foreign investors alike. Lartey believes that if Ghana wants to attract investment and keep the economy stable post-IMF, policymakers must adopt a long-term view that transcends political cycles.

“We have instances where there’s a new government that comes, removes or abolishes all the tax handles or almost all tax handles. And over time, they introduce new ones. That is a policy inconsistency, and it affects planning for businesses. And so we have to ensure there’s policy coherence and consistency across the board and over time. Otherwise, after every four years, we kind of remove all tax handles and then over time, we introduce new taxes,” he noted.

He added that, “In taxation, you are either enforcing existing laws, amending new laws to make them more efficient, and then introducing new laws. Every budget that’s been presented to parliament over the last five years or so has introduced new taxes. that does not enhance policy consistency.”

Enforce the Laws: Confidence Starts with Discipline

Yaw Appiah Lartey also emphasized the importance of strengthening institutions and enforcing existing laws, especially when it comes to ensuring fiscal discipline and protecting the cedi as legal tender.

He states that Ghana does not have a deficit of appropriate laws that guide the conduct of public officials in maintaining prudent financial management. However, the challenge has always been the commitment to follow the dictates of the laws. In addition, he observes that there is always a leeway that enables public officials to circumvent the law, citing the suspension of the 5% Fiscal Responsibility Rule as an example.

On the dollarization of the economy, he narrated how other African countries such as Kenya and Ethiopia have been able to uphold their currency over the dollar. He reveal how elsewhere, like in Kenya or Ethiopia, people see the dollar and shrug.

“Go to Kenya, go to Ethiopia, you put a dollar on the table, and the person sees it almost like a fake currency. Because the guy doesn’t see any value in the dollar. Give a dollar to someone in this room, and you will see how the person gets excited. Yes, because he knows that there’s an abokyi behind this auditorium who’s ready to take it. Elsewhere, you can’t have that,” he narrated.

He further bemoaned how Ghana has allowed a parallel economy to grow, where landlords charge rent in dollars and private schools demand USD fees, despite legal provisions against it. Lartey says this sends the wrong signal and feeds speculation and erosion of confidence in the cedi.

“We have to empower the relevant institutions to enforce the laws. And by doing that, we restore confidence and trust in the local currency. We have to, over time, restore confidence in our local currency as a store of value and also as a currency for all transactions,” he proposed.

Opening Local Businesses for Investment Beyond Ghana

Finally, Lartey called for a bold expansion of investment opportunities beyond Ghana and Africa by strengthening local capital markets and pushing for initiatives like the proposed West Africa Exchange.

He therefore decried the low activity on the Ghana Stock Exchange, where IPOs have become very few, as a testament that the appetite to invest is low locally. However, he maintains that there are investors outside, say in Senegal or Nigeria, who would be willing to invest in Ghanaian businesses like Blue Skies and others.

With improved listings and regional investment platforms, Ghanaian companies can access foreign capital without borrowing, creating jobs, and reducing reliance on aid and loans.

He added that deepening the capital market would also help reduce the economy’s obsession with the dollar by offering local investment avenues with strong returns.

“If we enhance our capital markets, we will have opportunities where businesses are doing well. And we wouldn’t have to rely on foreign currency and be debating,” he indicated.

The Bottomline

Yaw Lartey warned that speculation thrives when there’s low confidence in the currency. If people believe the dollar will rise tomorrow, they rush to buy today, fueling further depreciation. “We need to break this cycle,” he said. “And that means rebuilding trust from the ground up.”

As Ghana prepares to eventually exit the IMF program, Lartey’s three-point plan offers a clear and practical guide to maintain the steady progress the country has recorded under the fund program.

He wants the country to stick to consistent policies, enforce the rules already in place, and expand Ghana’s investment base beyond borders.

For him, Ghana can’t keep relying on the IMF to impose discipline. It’s time to impose it on ourselves.

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