Financial economist at the University of Ghana Business School (UGBS), Professor Lord Mensah, has said the inconsistencies of the former Finance Minister, Ken Ofori-Atta, were problematic for the investor community.
Ken Ofori-Atta was relieved of his post in a ministerial reshuffle notice from the presidency on Wednesday, February 14, 2024
Meanwhile, 3News Political Desk’s sources at the presidency say the longest-serving minister for finance is set to be appointed as the president’s special advisor on all matters relating to the economy.
Additionally, Ofori-Atta will double as the president’s special envoy on international investment and the capital markets, according to sources with knowledge of the matter.
But responding to market sentiments following the announcement of the sacking of Ofori-Atta on TV3’s Ghana Tonight programme on Friday, Feb. 16, Prof. Mesnsah categorically stated that there were too many inconsistencies with the former minister, which were worrying investors both locally and abroad.
“Honestly, if you look at the uncertainties around the [former] finance minister when it comes to his decision-making and some of the responses to the public, you come to understand that there was a huge uncertainty around him,” he said, adding, “one point he will say we are going to the IMF, another point he will say we are not going.”
He further stated that the attitude of the former finance minister regarding giving optimistic dates to achieve some economic targets yet failing was problematic.
“Giving out serious, optimistic dates for achieving certain economic targets has been problematic, and every discerning investor will really worry about it,” he said.
He emphasized that these inconsistencies are not helpful for the financial space to attract many investors.
He noted that removing Ofori-Atta was “good news to the investor community.”
According to the financial economist, this is because the same Ofori-Atta took the country out of the IMF and later took it back to the Fund.
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“It is the same finance minister who took us out of the IMF, and to the point that he was celebrating our IMF exit, and in one way or the other he sent us to the IMF again,” Prof Mensah stated.
He, however, noted that the behavior of the former finance minister “calls into question whether you can trust him or not.”
“So, if you are an investor who is targeting putting your money in the Ghanaian environment, you will obviously get worried,” he added.
Ghana’s economy was priced out of the capital market due, in part, to excessive borrowing. The country is currently under an IMF extended credit facility programme.
The world’s leading producer of cocoa and gold has received USD$1.2 billion of the total USD$3 billion rescue loan from the Bretton Wood Institution.