To guarantee that Ghana receives the full benefits of the continuing bailout package, the International Monetary Fund (IMF) is pleading with the government not to stray from the path of its fund strategy.

The Fund demands that structural reforms be implemented effectively after the release of the second tranche of $600 million, and at a time when the government is reportedly thinking about consulting with the IMF to reach an agreement on the estimated revenue shortfall resulting from the planned suspension of the electricity VAT.

However, in order for Ghana to successfully navigate its way out of the economic crisis, the IMF mandates that it follow the agreed-upon austerity measures.

• Investor sentiments, IMF disbursement to keep Ghana’s exchange rates stable- Fitch Solutions

“What I can say is that going forward, it would be really, really important that Ghana continues to implement the program that they have developed as envisaged. That is really critical. These programs are designed to be implemented over three, four years. And it is important that Ghana sticks to the course and sees the program being implemented over the next three years,” says Abebe Selassie, Director of the African Department at the IMF, who has been speaking about Ghana’s program in Washington, DC.

In late January, the Bank of Ghana acknowledged receipt of US$600 million as the second tranche for budget support and stabilization of the local currency, bringing the total to US$ 1.2 billion out of the $3 billion approved under the three-year extended credit facility in May 2022.

The IMF has stated that Ghana is performing well under the program, with reforms bearing fruit and signs of economic stabilization emerging.

“Ghana’s program is being implemented effectively. We just went to the board recently with the first program review following, of course, the policies that the government has been putting in place to address the huge imbalances Ghana was facing through last year. And of course, the official creditors are signaling that they will provide debt relief, consistent with what Ghana needs. So, we just went to the Board a couple of weeks ago. We look forward to continuing to support Ghana, consistent with program implementation,” Abebe Selassie added.

Ghana’s next IMF program review is scheduled for June 2024 for the third tranche of approximately US$ 360 million.

Mr Kwamina Asomaning, Chief Executive of Stanbic Bank Ghana, has called on young graduates to embrace the journey of discovery as they begin their lives out of school.

Mr Asomaning said this when he delivered an address at the graduation ceremony for the College of Humanities, University of Ghana.

Sharing his experience some 28 years ago as a graduate, he said there would be an array of career choices and paths to post-tertiary education, which required that one took advantage of every opportunity that came.

“Becoming a banker was not at the top of my list, but here I am today, about to complete my 27th year in banking. Through it all, one important lesson that I have learned is to embrace the journey of discovery,” he said.

He added that: “It’s perfectly okay to not have every detail of your path mapped out right away. I did not have mine on the day of graduation. My plea to you, therefore, is to allow yourself the freedom to explore your interests, take on new challenges, and trust that your unique path will unfold over time.”

Mr Asomaning also urged the graduates to be balanced in their expectations in pursuing their dreams and what life would present to them.

“Life often takes unexpected turns, and being open to different possibilities can lead to fulfilling and rewarding opportunities you might not have anticipated. My willingness to explore further academic opportunities opened a plethora of professional opportunities worldwide,” he said.

Mr Asomaning asked the graduates to enhance their skills through continuous learning, professional certifications, and capitalise on networking opportunities.

“Explore internships, freelance work, or volunteering to build a robust portfolio. Your journey doesn’t have to be linear – be open to diverse opportunities,” he encouraged them.

“Additionally, consider entrepreneurship by researching, developing a business plan, and networking with potential collaborators or investors. The entrepreneurial path offers independence and a chance to make a lasting impact. Embrace the entrepreneurial spirit and let your creativity flourish,” he said.

Mr Asomaning urged the graduates to cherish the relationships formed during their time at the university and stay connected to their alma mater, noting that such bonds would be critical in shaping their lives.

The ceremony, held at the Great Hall, was attended by members of the University administration, faculty, and family and friends of the graduates.

The Institute of Energy Security (IES) has asked the government to resource the Electricity Company of Ghana (ECG) effectively to increase revenue.

The Institute noted that resolving technical and commercial losses incurred by the Company would be ideal in raking in more revenue for the ECG’s operations than to introduce a tax handle.

The call follows government’s announcement of a 15 per cent Value Added Tax (VAT) on electricity consumption for residential customers exceeding the maximum consumption level for lifeline units.

Mr Andrew Agyapa Mercer, Deputy Energy Minister, has explained that the decision by government, though was a “difficult one”, was necessary to help clear off debts owed independent power producers.

In an interview with the Ghana News Agency, Nana Amoasi VII, Executive Director, IES said: “We must ensure that technical losses are brought down to the nearest minimum.”

“They [ECG] should look for the smart metres that are capable to communicate right, able to detect theft, and put in the right transformers and right cables in the distribution lines,” Nana Amoasi VII said.

On the implementation of policies, he noted that over the past few years the government had made and passed polices and regulations for the power sector by “always putting the cart before the horse”.

That, he explained was not a good way to have the buy-in of the populace, therefore, called on the government to engage the citizenry and be transparent with all stakeholders, and be receptive to alternative views to make the energy sector robust.

“It will be a smart thing for government to reverse this decision because it’s not going to help the sector, it is counter-productive,” the IES Executive Director said.

Unions, including the Trades Union Congress (TUC) and the Ghana Union of Traders Association (GUTA) have all opposed the implementation of the 15 per cent VAT on electricity, citing its adverse impact on the economy.

“GUTA firmly believes that the introduction of these additional costs will burden businesses, exacerbating the already high cost of doing business in the country,” said, Dr Joseph Obeng, President, GUTA.

Speaking on a local radio station, Mr Joshua Ansah, Deputy Secretary-General, TUC, said the VAT on electricity would exacerbate the socio-economic hardships of Ghanaians.

“The government has not informed us, neither have we met with them to officially tell us their intention to withdraw the tax. We only heard it on social media, and trust me, we will not rely on social media to make decisions,” he said.

He said the Union was still preparing to embark on its intended demonstration till it received official assurance form government on the withdrawal of the tax.