Joe Jackson criticizes Akufo-Addo over comment on return to international credit market to borrow

The Director of Business Operations at Dalex Finance, Joe Jackson, says it is too early for Ghana to return to the international capital market to borrow funds for infrastructural projects following the successful completion of Ghana’s $3 billion deal with the International Monetary Fund.

The financial analyst criticized parts of President Akufo-Addo’s speech at the Qatar-Africa Economic Forum in Doha, where he disclosed that Ghana is well-positioned to return to the international market to obtain funds for ongoing projects.

Mr. Jackson, in an interview on Eyewitness News on Citi FM, said the president’s assertions of Ghana returning to the international market are baffling, especially when the $3 billion deal with the International Monetary Fund (IMF) has barely been finalized.

“I am not clear in my mind whether the president is talking about borrowing in the next year or so, or whether he is referring to borrowing from the international Eurobond or commercial paper market in the next three or four years because we haven’t even finished negotiating with the current creditors. We haven’t dotted the I’s and crossed the T’s. We have a commitment as to the way forward, but the deal hasn’t been finalized yet, so going back to the market baffles me a bit.”

He suggested that the country should consider returning to the international market at a point “where the country’s revenue has demonstrably gone up, where we have reduced the size of the government, and where we have made an attempt at structural changes that will make the economy sustainable. We are not at that point yet.”

Speaking at the Qatar-Africa Economic Forum in Doha, Mr. AKufo-Addo said even though his government is in no rush to return to the international market, it makes sense to take advantage of the market now and make some savings.

“We have positioned ourselves to be able to go back into the International market which had been a source of funding for us during the first three or four years of our government,” the president said, adding, “There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme.”