Former Finance Minister Seth Terkper has stated that Ghana’s capacity to create jobs was severely hampered by the restrictions of the International Monetary Fund (IMF) programme and the state of debt distress inherited by the current administration.
Speaking on PM Express Business Edition on Joy News, Mr. Terkper, who now serves as a government economic advisor, explained that while the National Democratic Congress (NDC) manifesto contained clear plans for employment, the fiscal reality of the government’s early months limited implementation.
He noted that the administration encountered an economy where access to both domestic and international capital markets had been shut off due to a sovereign default.
“You’ve been shut out of your own domestic bond market, which we set up. You’ve been shut out of the external bond market because you’ve defaulted,” Mr. Terkper stated.
He argued that these constraints forced the government to prioritize economic stabilization over direct investment. According to the former minister, this delay directly impacted job creation, as capital-intensive projects were unable to take off amid tight financing conditions.
“Government is rapidly taking corrective measures, but that has delayed the investments that had to be done in the real sector,” he said.
Mr. Terkper maintained that difficult measures were necessary to halt further economic decline but noted that conditions are now beginning to improve. He pointed to renewed access to longer-term financing and improving credit ratings as signs that the government can now focus on development projects.
“Now we are climbing up, and, therefore, you are hearing about money being released for capital projects; we are being able to borrow for a longer period, and our ratings have gone up,” he said.
He stressed that the recovery would not lead to reckless spending, adding that major initiatives such as Agenda 111 and the Big Push are beginning to show progress as part of the government’s job creation agenda.
