Why I’m not leading Ghana’s IMF team – Seth Terkper
The Minister for Finance, Seth Terkper, has explained why he is not leading the Ghanaian team that is set to negotiate a package of technical and financial assistance with the International Monetary Fund (IMF).
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President John Mahama has tasked former Finance Minister, Kwesi Botchwey, to lead Ghana’s negotiations at the IMF, triggering a flurry of accusations among a section of the public that Terkper had been sidelined.
But speaking Monday during a joint interview with Accra-based Citi FM and Radio Gold, Terkper denied having been sidelined, stressing that the role being played by Botchwey should be seen as a sign of teamwork within President Mahama’s administration.
According to Terkper, the President has an Advisory Committee and an Economic Management Team chaired by the Vice-President that advise him on economic matters.
He said Botchwey had played a similar role when he led Ghana’s negotiations for Millennium Challenge Account (MCA II) compact from the United States of America to improve electricity supply within the country.
Botchwey's effort, Terkper said, had not diminished the role of the Minister for Energy, Emmanuel Armah Kofi-Buah.
“That’s why I spoke about team work. That’s why I spoke of the job that has to be done.
“I see this more as a team effort. It doesn’t mean I will be off the negotiation team. I still need my technical team in the discussions,” Mr Terkper explained.
Eurobond
Terkper expressed delight that Ghana’s third Eurobond of US$1 billion at a coupon rate of 8.125 per cent had been successful.
The bond is a soft amortising one, amortising in 2024, 2025 and 2026, with principal repayment in three instalments of US$333 million in 2024 and 2025 and US$334 million in 2026.
The Finance Minister said the bond, which was oversubscribed, with orders reaching up to $3 billion, was a sign that confidence in the economy had been restored.
Some analysts had predicted that Ghana would find it difficult raising even $750 million, and that if even the country managed to raise the amount, it would be at a coupon rate of 10 per cent.
Asked how the government plans to use the $1 billion, Terkper ruled out spending it on capital expenditure such as payment of wages and utility bills at government agencies.
Rather, he said, the money would be used for the “development of infrastructure, refinancing, counterpart funding and new capital.”
He said the government would invest in projects that “can pay for themselves”, such as constructing a deep sea port at Atuabo to effectively exploit Ghana’s gas and building good roads in cocoa-producing parts of the country.
Regarding the construction of social infrastructure, Terkper said the government was in a good position now to meet its commitment on GETFUND, so that it can deal with construction of schools. He said the remainder of government revenue will also be expended on putting up health facilities and other vital infrastructure.
Economic Recovery
Terkper went on to add that Ghana’s economy was entering a new phase of growth and stability.
He said the fall in the market prices of cocoa and gold and the disruption in gas supply from Nigeria, among other challenges, had combined to undermine the economy in the last two years.
However, he said the resumption of gas supply from Nigeria, the development of Ghana’s own gas infrastructure at Atuabo and the rise in cocoa market prices would help usher Ghana into a new era of growth.
“The cedi is already making some recovering,” the Finance Minister observed.
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He said the government had also settled all Single Spine Salary Structure (SSSS) arrears that it owed.
Terkper said Ghana’s economic prospects were so bright that Tullow Ghana Limited and Kosmos Energy would build a second FPSO for Ghana, worth $1billion.
According to him, no private sector player will invest such a huge amount in Ghana if the country’s economic diagnosis was poor.
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