Building financial buffers can end IMF dependence – Prof Gatsi

Economist and National Economic Dialogue Planning Committee member, Professor John Gatsi, has emphasized the urgent need for Ghana to build strong financial buffers to end its cycle of repeated International Monetary Fund (IMF) bailouts.

He asserts that prudent economic management and financial resilience are key to breaking Ghana’s dependence on the IMF.

Sixty-eight years after independence, Ghana’s economy remains vulnerable to cycles of crisis and external interventions, raising concerns about financial sovereignty.

“It is not magical for anybody to say we will not go to the IMF again. What has been leading us to the IMF is poor management. If we are able to build the correct buffers for all the sectors, I believe we will be solid,” Professor Gatsi said in an interview with Citi Business News.

Ghana has turned to the IMF 17 times, with the latest bailout—a $3 billion Extended Credit Facility (ECF)—secured in 2022 following a severe economic downturn. Persistent fiscal deficits, inadequate domestic revenue mobilization, and rising debt levels continue to fuel the country’s reliance on external support.

The current IMF-backed program aims to restore macroeconomic stability and debt sustainability while fostering stronger, more inclusive growth. However, concerns persist about whether Ghana can permanently escape its reliance on external financial assistance.

Professor Gatsi, who is also the Dean of the University of Cape Coast Business School, insists that Ghana must develop robust financial safeguards to withstand economic shocks rather than turning to the IMF at every financial crisis.

“We will not be drifting towards the IMF at the least financial distortions or at the least threat that is directed towards the finances of this country. We will be robust, solid, and we will be relying on the buffers that we build rather than going to the IMF,” he added.

According to him, building these buffers requires disciplined fiscal policies, improved revenue generation, effective debt management, and strategic investment in productive sectors.