World
Reviewing Ghana’s Economic Policies Within the Context of Geopolitical Changes
By Professor Maurice Okoli
The Executive Board of the International Monetary Fund (IMF), after several stages of negotiations, has finally approved a 36-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to SDR 2.242 billion (around $3 billion or 304 per cent of quota) for the Republic of Ghana.
While this Credit Facility Arrangement for Ghana is presumably necessary for the country’s economic recovery, it is also necessary to examine the governance system adopted in the country.
In recent years, Ghana has found itself in an economic crisis – brought on by excessive borrowing – and a resulting need for debt restructuring. As the government seeks to navigate this difficult situation by returning to the IMF, it is important to outline economic restructuring, including structural governance.
As we all know that life after COVID-19 will never be the same, several reports monitored indicated that COVID-19, which began in 2019, combined with the current Russia-Ukraine crisis, have had devastating effects across the world. African countries are the hardest hit. Many West African states like Ghana, located on the Atlantic coast and a member of the regional organization, Economic Community of West African States (ECOWAS), are equally facing serious similar economic challenges.
But analyzing the implications of Ghana soliciting assistance from the IMF, the country is on the brink of entering a period characterized by market stability and diminished uncertainties following the International Monetary Fund’s (IMF) approval of the $3 billion deal.
Many experts have blamed political, economic and energy crises, which spiral negative sentiments and discontent on mismanagement. For example, a renowned American Professor of Economics, Steve Hanke, has chastised Finance Minister Ken Ofori-Atta for mismanaging the Ghanaian economy.
Professor Hanke, who is a hard critic of Ghanaian authorities, in a tweet, was surprised about Ofori-Atta’s position that he’s disappointed foreign lenders have been slow to act in supporting Ghana’s quest to get a programme from the International Monetary Fund.
“As 33 African countries suffer from record debt burden, Ghana’s Finance Minister, Ken Ofori-Atta is disappointed that foreign lenders had been ‘slow to act’, but instead of recognising mismanagement, he is blaming creditors for Ghana’s debt burden,” Professor Hanke concluded.
As an experienced Economist who have been teaching courses in economics or related subjects, I would like to suggest that Ghana takes advantage of the current economic challenges to reset interest rate to accelerate private sector growth and quicken the recovery of the economy. In this case, the private sector led the economic recovery process post the domestic debt exchange programme. It has further identified the opportunities in the current economic crisis that can leverage to spur private sector growth.
The next step supports the private sector and their performances as the engine and driver for long-term growth, despite the turbulent economic situation, particularly in the country and in the West African region and generally across the world.
Overall, the most critical step now is improving the quality of governance in Ghana, and that would require the government to address issues such as weak institutions, lack of accountability and ineffective public services. This would involve increasing transparency in government operations, strengthening institutions such as the judiciary, and improving public service delivery.
But one more significant question, as I have already pointed out, is to ensure good governance and build confidence in public institutions. It could be a positive indication and the trust that the economy needs to bounce back and attract foreign investment in the areas for public-private collaboration.
Quite apart from that, it is an additional advantage that Ghana hosts the headquarters of the African Continental Free Trade Area (AfCFTA), described as a unique and valuable platform for businesses to access an integrated African market. This could be the strongest dimension to build intra-trade and cooperation with neighbours in West Africa.
With economic growth and sustainability concerns, it is highly suggested that Ghana reviews its imports and attempts to focus more on import substitution policies and the areas it natural comparative advantages. It refers to the implementation of policies and measures that aim to address a country’s food security and self-sufficiency. It helps to cut import expenditures and redirect finances to support domestic food production. It reduces budget deficits and addresses financial imbalances leading to the improvement of economic sustainability.
One way to achieve this is by implementing policies and measures that reduce government spending and waste. This could involve a combination of measures such as rationalizing government programmes, reducing subsidies and cutting non-essential expenditures. The goal is to create a leaner, more efficient government that can better manage its finances.
This could involve strengthening budgetary controls, improving public financial management systems, and enhancing the transparency and accountability of government finances. By doing so, Ghana can ensure that public funds are used efficiently and effectively – and that the country’s fiscal position is sustainable over the long term.
As the IMF reported, the authorities’ economic programme, supported by the ECF arrangement, builds on the government’s Post Covid-19 Programme for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.
Securing timely debt restructuring agreements with external creditors will be essential for successfully implementing the new Extended Credit Facility (ECF) arrangement. The Executive Board’s decision will enable an immediate disbursement to Ghana equivalent to SDR 451.4 million (about $600 million). The authorities have taken bold steps to tackle these deep challenges, including by accelerating fiscal adjustment, revenue administration and public financial management, and steps to address weaknesses in the energy and cocoa sectors.
However, it is focused on restoring macroeconomic stability and debt sustainability and implementing wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth. Ms Kristalina Georgieva, Managing Director, explicitly said in her message that “An ambitious structural reform agenda is being put in place to reinvigorate private sector-led growth by improving the business environment, governance, and productivity.”
Ghana has an economic plan known as the “Ghana Vision 2020”. This plan envisions the first to become a developed African country between 2020 and 2029 and a newly industrialized country between 2030 and 2039. As of 2019, it was the 7th largest producer of gold in the world. It is a leading producer and exporter of cocoa to Europe. The Republic of Ghana, with a population of over 32 million, is located on the coast of West Africa.
Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is a fellow at the North-Eastern Federal University, Russia
By Kestér Kenn Klomegâh
For the first time in its history, the World Public Summit will be held on the African continent. On 29–30 July 2026, Addis Ababa, the capital of Ethiopia, will host the World Public Summit. Africa — “A New World: Africa in Shaping a Shared Future.”
The Summit is organised by the World Peoples Assembly in cooperation with African partner organisations. It will bring together leaders of public diplomacy, representatives of international intergovernmental and non-governmental organisations, academics, experts, representatives of the education and cultural sectors, youth leaders, socially responsible businesses, media professionals, and civil society institutions from across Africa and other regions of the world.
The World Public Summit. Africa continues the work initiated during the First World Public Assembly “A New World of Conscious Unity,” held in Moscow in September 2025, and serves as one of the key milestones in preparation for the Second World Public Assembly “A New World: Values That Unite,” which will take place in Moscow on 18–19 September 2026.
Today, Africa is emerging as one of the principal centres of global development. Rapid demographic growth, expanding entrepreneurship, strengthening regional integration, rich cultural heritage, and the growing role of civil society institutions make the continent an increasingly important contributor to the future architecture of international cooperation.
The Summit will focus on issues of genuine sovereignty and sustainable development, public diplomacy, preservation of cultural and historical heritage, international cooperation in education and science, youth engagement, innovation-driven development, creative industries, and the formation of new partnerships among countries and peoples.
The main business programme of the Summit will take place on 30 July 2026 at the headquarters of the United Nations Economic Commission for Africa (UNECA) in Addis Ababa. Holding the Summit at UNECA highlights its pan-African dimension and creates opportunities for broad international dialogue on humanitarian cooperation and public diplomacy.
The programme will include plenary sessions, strategic dialogues, and expert panels dedicated to values-based development, education, culture, youth leadership, innovation, and international cooperation.
Participation has already been confirmed by Professor Saidou Madougou, Director of the Department of Education, Science, Technology and Innovation of the African Union; Rita Bissoonauth, Director of the UNESCO Liaison Office to the African Union and UNECA in Addis Ababa; Zuzana Schwidrowski, Director of the Macroeconomics, Finance and Governance Division of UNECA, as well as ministers, leaders of public organisations, and representatives of the business community from a number of African countries.
On the same day, the ADWA Victory Memorial Museum—Ethiopia’s national memorial complex dedicated to the Victory of Adwa and an important centre for preserving the historical memory of the Ethiopian people—will host the award ceremony of the regional stage of the V International Competition “Leader of Public Diplomacy”, followed by a large-scale cultural programme.
One of the key outcomes of the Summit will be the adoption of the African Communiqué, reflecting proposals and recommendations aimed at strengthening humanitarian, educational, cultural, and public cooperation between African countries and other regions of the world.
The outcomes, initiatives, and recommendations were developed during the World Public Summit. Africa will be presented at the Second World Public Assembly “A New World: Values That Unite”, to be held in Moscow on 18–19 September 2026.
According to Andrey Belyaninov, General Secretary of the World Peoples Assembly, “the Addis Ababa Summit is an important step toward building a new world founded on mutual respect, cultural diversity, dialogue and sustainable development.”
By Adedapo Adesanya
The United Kingdom will get its seventh Prime Minister in 10 years as Mr Keir Starmer announced his resignation on Monday.
The Minister said he is stepping down as leader of the governing Labour Party and will leave office within weeks, scarcely two years after being elected in a landslide.
Mr Starmer says he will remain caretaker prime minister until a new Labour leader is chosen by the party.
Mr Starmer made the announcement after facing growing pressure to hand over to a new leader who can try to revive the government’s flagging fortunes.
He led Labour to a landslide election victory in July 2024, but since then, his popularity and that of the party have plummeted.
His departure was triggered by the victory of Mr Andy Burnham in a special election last week. The popular ex-mayor of Greater Manchester planned to challenge the existing PM for the Labour leadership.
Mr Starmer made the announcement outside the prime minister’s 10 Downing St. residence with a brief statement on Monday.
“The question my party is asking now is whether I am best placed to lead us into the next general election,” Mr Starmer said. “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.
Mr Starmer is the sixth prime minister in a decade to stand outside 10 Downing Street and announce a premature departure.
It comes the day before Britain marks the 10th anniversary of its vote to leave the European Union, a decision that still affects the country’s economy and politics.
Over the past decade, 10 Downing Street has had six occupants, including Mr David Cameron, who left office in 2016 after the Brexit referendum and was succeeded by Ms Theresa May. She was followed by Mr Boris Johnson, whose tenure covered Brexit and the COVID-19 pandemic. After Mr Johnson came Ms Liz Truss, whose 49-day premiership was the shortest in British history. Mr Rishi Sunak then took office before being succeeded by Mr Starmer, the outgoing occupant of Number 10.
By Aduragbemi Omiyale
A financing facility of up to $60 million has been secured by AXIAN Energy, the energy division of the AXIAN Group.
The funding package was provided by MCB, one of the leading financial institutions in the Indian Ocean region.
It comprises a $40 million revolving credit facility with a three-year tenor and extension option, and $20 million in unfunded instruments, providing AXIAN Energy with enhanced financial flexibility, enabling the company to rapidly mobilise resources and seize development opportunities across its target markets.
The energy firm is expected to use the capital to deliver large-scale energy infrastructure projects across Africa.
Over the past two years, AXIAN Energy has significantly accelerated its growth by expanding its renewable energy project pipeline, with solar projects currently under development in Senegal, Benin, Zambia, Côte d’Ivoire, Madagascar, and Burkina Faso.
Building on this momentum, AXIAN Energy now operates a portfolio comprising 350 MW of installed renewable energy capacity, supported by 77 MWh of energy storage capacity, positioning the AXIAN Group as a major contributor to Africa’s energy transition.
The chief executive of AXIAN Energy, Mr Benjamin Memmi, said, “This transaction marks a key milestone in AXIAN Energy’s growth trajectory. It provides us with the financial capacity to sustain the momentum we have built over the past two years, further strengthening our renewable energy portfolio and expanding our presence across new African markets.”
Also commenting, the Global Head of Structured Finance at MCB, Mr Mathieu Delteil, said, “We are proud to support AXIAN Energy in structuring this facility, reaffirming our commitment to enabling transformative projects across Africa.
“By leveraging our sector expertise and deep understanding of regional markets, we have delivered a tailored financing solution that aligns with AXIAN’s long-term renewable energy ambitions.
“This partnership highlights our role as a strategic financial partner, mobilising capital towards investments that drive sustainable growth and accelerate the energy transition across the continent.”
The financing agreement between the two organisations strengthens their long-standing relationship because it is driven by a shared commitment to supporting infrastructure development and economic growth across Africa.
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