Ken Ofori-Atta, Ghana’s finance minister until his dismissal, by President Nana Addo Dankwa Akufo-Addo, has Accrued Debts which in many decades to come, would have an economic impact on the people of Ghana. As he transitions to roles including senior presidential advisor on the economy and special envoy on international investment and capital markets, it’s crucial to reflect on the highs and lows of his tenure.
Ofori-Atta’s time in office was nothing short of historic, navigating the Ghanaian economy through the tumultuous waters of the COVID-19 pandemic and the global economic repercussions of the Russia-Ukraine War. However, his term also witnessed significant economic challenges, including a record inflation rate of 54.1% in December 2022 and a 55% depreciation of the country’s currency within the same year.
The Longest-Serving Finance Minister in the 4th Republic
Serving approximately 7 years, Ofori-Atta became the longest-serving finance minister in Ghana’s 4th Republic, a record no predecessor had achieved.
From IMF Exit to Re-entry
Ofori-Atta uniquely led Ghana both out of and back into an IMF program. Initially inheriting an IMF program from the previous administration, he successfully concluded it in March 2019, only to re-enter negotiations for a $3 billion IMF bailout in May 2023 at the president’s directive.
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Historic Debt Accumulation
Under his watch, Ghana’s public debt soared by about GH¢480 billion, reaching nearly GH¢600 billion by March 2023. This accumulation was unprecedented, surpassing the total borrowed by all previous governments since independence.
Record Eurobond Engagements
Ofori-Atta’s tenure was notable for its aggressive pursuit of Eurobonds, with 11 out of 17 Eurobonds issued in the history of Ghana’s 4th Republic being signed during his term. These bonds, with extended maturity periods far beyond the standard, underscored a bold approach to international capital markets.
A First in Debt Default
A less enviable record was set under Ofori-Atta’s stewardship when Ghana defaulted on its debt payments for the first time. This was part of the measures, including a Domestic Debt Exchange Programme (DDEP), undertaken to secure the $3 billion IMF bailout.
Ken Ofori-Atta’s tenure as finance minister was characterized by bold financial maneuvers, groundbreaking records, and the navigation of unprecedented economic challenges. While his methods and decisions were sometimes contentious, the impact of his actions on Ghana’s economic landscape will be felt for years to come.
As Ofori-Atta moves on to his new roles within the government, his tenure as finance minister will be remembered for its significant contributions to Ghana’s economic history, both in terms of achievements and the challenges faced.
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