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According to a report by the American news agency, Reuters, Ghana’s president has replaced the finance minister in the cabinet after facing criticism for his handling of the nation’s economic challenges.
The decision comes amid preparations for the upcoming presidential elections and was announced on Wednesday by the president’s office.
The office also disclosed that Mohammed Amin Adam, the minister of state at the finance ministry who previously served as deputy energy minister, would be taking over from Ofori-Atta. The former Finance Minister Ken Ofori-Atta has been overseeing the nation’s debt restructuring efforts as Ghana grapples with its most severe economic crisis in over two decades.
Ofori-Atta assumed office in 2017 alongside the president with the objective of creating employment opportunities, combating poverty, and enhancing economic growth through tax cuts and regulatory reforms.
Over the past three years, Ghana’s economy has experienced a significant downturn, resulting in numerous economic hardships including a persistent increase in the cost of living and currency devaluation.
Although the economy appears to be gradually recovering under the International Monetary Fund’s $3 billion loan program, Ofori-Atta has faced criticism from protesters, opposition lawmakers, and members of his own party for his management of Ghana’s economic challenges. In May 2023, the International Monetary Fund’s executive board approved a $3 billion, three-year loan agreement for Ghana, allowing for an initial disbursement of around $600 million and potentially offering a lifeline out of the West African nation’s most severe economic crisis in a decade.
According to an IMF statement, early agreements on debt restructuring with foreign creditors are crucial for the effective implementation of the Extended Credit Facility loan, which aims to assist Ghana in addressing immediate policy and financial issues.
Shortly thereafter, Ghana outlined its plans to restructure its debt, seeking a $10.5 billion reduction in external debt service payments from 2023 to 2026.
Source: BusinessInsider