Finance Minister of Ghana, Ken Ofori-Atta, was relieved of his duties by President Nana Akufo-Addo on Wednesday, February 14, 2024. While Ofori-Atta’s tenure saw significant economic challenges and achievements, it also sparked debate and scrutiny over his management of the country’s finances.
During his tenure, Ofori-Atta navigated Ghana through major global events, including the COVID-19 pandemic and the Russia-Ukraine War. However, these events, coupled with domestic factors, contributed to economic lows, including a record inflation rate of 54.1% in December 2022 and a significant depreciation of the country’s currency.
Ofori-Atta’s tenure, spanning approximately seven years, marked him as the longest-serving Finance Minister in Ghana’s Fourth Republic. He assumed office in January 2017 and was retained for a second term until his recent dismissal.
One of the notable milestones of Ofori-Atta’s tenure was leading Ghana out of an International Monetary Fund (IMF) bailout program in March 2019. However, his subsequent request for another $3 billion IMF bailout program in 2023 drew criticism and raised concerns about the country’s debt accumulation under his leadership.
During his tenure, Ghana’s public debt reportedly increased by approximately GH¢480 billion, reaching nearly GH¢600 billion as of March 2023. Ofori-Atta’s administration also acquired significant debts from various sources, including the Paris Club, Chinese government, Eurobond market, and multilateral lenders, making him the finance minister responsible for the most debt accumulation in Ghana’s history.
Additionally, Ofori-Atta oversaw the issuance of numerous Eurobonds, with 11 bonds signed during his tenure, extending beyond the usual 10-year maturity period.
Another contentious issue was Ghana’s default in the payment of its international and domestic debts under Ofori-Atta’s watch. This marked the first time in the country’s history that such default occurred, prompting the government to implement a Domestic Debt Exchange Programme and restructure its international debts.
Despite these challenges, Ofori-Atta’s tenure also witnessed significant achievements, including leading Ghana through global economic crises and initiating efforts to address the country’s economic challenges.
Here are five records the Finance Minister has broken
The longest serving finance minister in the 4th Republic:
Ken Ofori-Atta left his role at his bank, DataBank, to become Ghana’s finance minister on January 27, 2017.
After successfully completing the first term (4 years) of President Nana Addo Dankwa Akufo-Addo’s tenure, Ofori-Atta was again retained as finance minister in the second term of the government until his sacking on February 14, 2024.
This brings Ofori-Atta’s reign as finance minister to about 7 years, making the longest-serving finance minister Ghana has had in the 4th republic.
Until Ofori-Atta, no finance minister in Ghana’s 4th republic has been in office for more than one term (4 years).
The only minister who has taken Ghana out and into an IMF program
Ofori-Atta’s reign as finance minister began with Ghana already implementing an International Monetary Fund (IMF) programme started by the John Dramani Mahama government.
In March 2019, Ofori-Atta led Ghana out of the ‘shackles’ of the IMF after the successful completion of the bailout programme, which was marked by a kenkey party at the inner court of the Ministry of Finance on March 22, 2019.
Having vowed that Ghana’s 16th visit to the IMF was going to be its last, and that another visit would never happen under his watch, Ofori-Atta requested for a $3 billion IMF bailout programme on May 17, 2023, after an order by President Akufo-Addo.
This makes Ofori-Atta the only finance minister in Ghana’s history to lead Ghana out of an IMF bailout programme and subsequently into another one.
The finance minister who accumulated the most debts in Ghana’s history
Under Ofori-Atta’s leadership as finance minister, Ghana added about GH¢480 billion to its nearly GH¢600 billion public debts as of March 2023.
The national debt Ofori-Atta inherited as finance minister was about GH¢120 billion.
This means that the Akufo-Addo government has borrowed more money than all of the governments Ghana has had since independence put together.
Here is a list of some of the debts accrued by Ofori-Atta
1. Paris Club – $2 billion
2. Chinese government – $1.9 billion
3. Non-Paris Club members – $3.8 billion
4. Chapmenten – $2.5 billion
5. $8.8 billion to the IMF
6. $14.9 billion to the Eurobond market
7. $8.8 billion in multilateral debts (the highest in Africa).
The finance minister who has gone for the most Eurobonds in Ghana’s history
In the history of the 4th republic of Ghana, Ghana has gone for 17 Eurobonds, with 4 of these bonds being acquired in 16 years by 4 governments.
Ofori-Atta alone has led Ghana to sign 11 of these Eurobonds with maturity dates beyond the usual 10 years.
The first Eurobond was also celebrated during the Kenkey party in 2019.
Below is a list of Eurobonds Ofori-Atta has signed for Ghana:
1. Eurobond in May 2018 – 30-year maturity period, bond expires in 20248
2. Eurobond in 2019 – 31 years maturity period
3. Eurobond in 2020, matures in 2061 – 41 years maturity period
4. Eurobond in March 2021, matures in 2041 – 20 years maturity period
The first finance minister to default in the payment of the country’s debt:
Lastly, Ken Ofori-Atta is the only finance minister under whose watch the government of Ghana has defaulted in the payment of its international and domestic debts.
In all the previous 16 visits to the IMF, none of the governments defaulted in the payment of its debts.
On December 5, 2022, the finance ministry announced a Domestic Debt Exchange Programme (DDEP) to restructure its domestic debts as part of efforts to get the $3 billion IMF bailout.
The government also went into agreement with countries and multi-national organisations to restructure its international debts.