Ghana’s President Mahama dissolves seven ministries to save costs 

The decision is part of a broader effort to streamline governance and meet the fiscal discipline requirements tied to the country’s $3 billion bailout from the International Monetary Fund (IMF).

President Mahama, in an official statement, emphasized that the restructuring aims to save costs and improve the efficiency of government operations.

“The new government structure reflects our commitment to prudent economic management,” the president stated in an e-mail announcement.

“By streamlining the number of ministries, we aim to save costs and ensure a more focused and effective governance framework.” 

The move signals the administration’s determination to tackle Ghana’s economic challenges, including high inflation, rising unemployment, and unsustainable debt levels.

The IMF bailout, secured in 2022, was sought to address Ghana’s growing fiscal pressures and stabilize its economy. Conditions tied to the financial assistance emphasized fiscal discipline and effective governance, areas that the Mahama administration has prioritized since assuming office.

President Mahama, who won a decisive victory in the December 7 elections, faces significant public pressure to deliver on campaign promises of economic recovery and improved living conditions.

“We understand the sacrifices Ghanaians are making,” Mahama said.

“Our administration is fully committed to restoring economic stability and improving the lives of our people. This restructuring is just one step in our broader plan to achieve these goals.” 

Ghana, Africa’s second-largest cocoa producer, continues to grapple with multiple economic hurdles. High living costs, crippling public debt, and a youth unemployment crisis have fueled discontent among citizens.

The government hopes that the savings from the dissolution of these ministries will create fiscal space for investments in critical sectors such as infrastructure, education, and healthcare.

Ghana secured a $3 billion bailout from the IMF in 2022 to address fiscal challenges, including unsustainable debt and inflation.

President Bola Tinubu reaffirmed Nigeria’s everlasting support for Ghana’s President during his inauguration in Accra on January 7.