Elikplimi Komla Agbloyor, an associate professor at the University of Ghana Business School (UGBS), has encouraged the government to urgently implement a backup strategy in case the IMF deal falls through.
Commenting on President Akufo-economic Addo’s speech to the nation, Mr. Agbloyor suggested that the anticipated IMF funds might not be sufficient, necessitating the need for what he called a “Plan B.”
“We are anticipating roughly $3 billion in dollar inflows into the economy if we are successful in reaching an IMF agreement by the end of the year. This ought to prevent the cedi from falling further.
“The depreciation of the cedi is one of the factors contributing to rising prices or inflation. Therefore, if we can reach a deal with the IMF, that will contribute to lowering the cost of living. On the Morning Starr with Francis Abban on Tuesday, November 1, 2022, Mr. Agbloyor emphasised that it should also make a recession less likely or more tolerable.
“But what I was expecting the President to do is that we should have a plan B,” he continued. Do we have a plan B, for instance, in the event that reaching an agreement with the IMF is delayed or fails altogether, which is a possibility? I’m stating this because, while the IMF will certainly be helpful, I don’t believe it will be enough.
He used Egypt as an example, where despite last week’s IMF agreement, they still needed support from the Gulf nations.