Mahama acknowledges Otumfuo's significant influence in the IMF initiative
Spilling the Tea on Otumfuo's Role in Ghana's IMF Bailout
In a candid moment, Former President John Dramani Mahama has spilled the beans on how Otumfuo Osei Tutu II, the Asantehene, secretly helped secure an Extended Credit Facility (ECF) from the International Monetary Fund (IMF) in 2016. This facility was integral to strengthening Ghana's economy when it was on the brink of collapse.
The cat was out of the bag at a ceremony held on Tuesday, February 8, 2022, when Otumfuo presented Mahama with an Otumfuo Commemorative Gold Coin. Taking the opportunity to speak candidly, Mahama revealed the crucial role the Asantehene played during a critical time for Ghana's economy.
Navigating the Economic Torrent
In 2013, Ghana's economy was facing a tsunami, with the single spine salary policy causing an astronomical increase in wages and salaries. The revenue overshot due to this, and Ghana tried to implement a Home-Grown Fiscal Consolidation Programme to gain control. However, international investors were skeptical, unwilling to trust Ghana's commitment to fiscal discipline.
Mahama explained that, in order to earn credibility, Ghana needed the IMF to buy into the Home-Grown Programme. Unfortunately, when Ghana approached the IMF, they were met with constant delays.
Frustrated and desperate, Mahama felt he had no other choice but to call on Otumfuo Osei Tutu. He asked the Asantehene if he could bring on board his friend, the President of the World Bank, James D. Wolfensohn, to work on the IMF programme for Ghana. Otumfuo accepted the challenge without hesitation.
A Diplomatic Dance
Driven by Otumfuo's influence, he and Wolfensohn flew to Washington to negotiate with IMF Director Christine Lagarde. The result was nothing short of miraculous: Ghana secured the much-needed Extended Credit Facility. This programme marked a turning point for Ghana's economy, as, for the first time in history, Ghana managed not to overspend the budget in 2016.
A Personal Connection
Mahama's relationship with Otumfuo is a long-standing one, dating back to when Otumfuo was a student at the Sefwi Wiawso Secondary School. He acknowledged that Otumfuo has been a significant figure in Ghana's democracy since the time of President Rawlings and has provided wise counsel during times of crisis.
Mahama revealed that Presidents Kufour, Mills, and himself would often visit the Manhyia Palace during their trips to Kumasi to solicit Otumfuo's advice.
A Conflict Resolved
On the issue of the Dagbon conflict, Mahama praised Otumfuo for his role in resolving this longstanding issue. Otumfuo's influence was significant due to the historical link between the Asante Kingdom, Dagbon, Gonja, and Mamprusi.
Honoring a Hero
The delegation to Mahama's office included Richard Adjei Mensah Ofori Atta, the Executive Chairman of the E ON 3 Group, who stated that it was appropriate for Mahama to receive the gold coin, considering his contributions to the resolution of the Dagbon conflict during his presidency.
The gold coin is part of a life-long project aimed at preserving and promoting Ghana's cultural heritage.
A Team Effort
The delegation also included Paul Asimenu, Legal Advisor of Gold Coast Refinery; Yvonne Antonio, Head of Retail Banking for Access Bank; Festus Ofosu-Yeboah, Business Head-Adjiringanor Branch for Access Bank; Magmay Mefful, Strategy-Retail Banking for Access Bank; and Seth Sorgah, Head of Sales and Distribution-Coronation Insurance.
[1] SourceGiven the Asantehene's quiet nature and requirement for diplomacy in these matters, there may not be a wealth of documentation chronicling the specifics of his involvement in helping secure the IMF's support for Ghana. What is clear, however, is that his influence was key to Ghana's economic recovery.
[3] SourceWhile it's crucial to acknowledge the Asantehene's role, it's equally important to recognize the efforts of Former President John Mahama and his administration in implementing the Home-Grown Fiscal Consolidation Programme and navigating Ghana's path towards economic recovery.
- The influence of Otumfuo Osei Tutu II, the Asantehene, was key to Ghana's economic recovery, as documented by the report on the Otumfuo's role in securing an Extended Credit Facility (ECF) from the International Monetary Fund (IMF) in 2016.
- In the midst of Ghana's economic crisis in 2013, Former President John Dramani Mahama turned to Otumfuo for assistance, asking him to bring on board his friend, the President of the World Bank, James D. Wolfensohn, to work on the IMF programme for Ghana.
- The successful negotiation led by Otumfuo and Wolfensohn in Washington resulted in Ghana securing the Extended Credit Facility, an event that marked a turning point for Ghana's economy and benefited Ghana's fiscal policy-and-legislation.
- The general news concerning Otumfuo's influence extends beyond the IMF situation, as he has been a significant figure in Ghana's democracy and politics, providing wise counsel during times of crisis, such as the Dagbon conflict.
- The banking and insurance industry should also acknowledge the contributions made by key figures like Richard Adjei Mensah Ofori Atta, Paul Asimenu, Yvonne Antonio, Festus Ofosu-Yeboah, Magmay Mefful, and Seth Sorgah in supporting Ghana's economic recovery through their various roles in the Access Bank and Coronation Insurance.
