Ghana's President Nana Akufo-Addo has replaced his finance minister as the West African country seeks to secure an agreement with commercial creditors on debt restructuring before December elections.
The President announced in a statement in the capital, Accra, on Wednesday that Mohammed Amin Adamu, currently the Minister of Finance, will replace Ken Ofori-Atta, effective immediately. He said 12 other ministers and 10 deputy ministers were relieved of their duties in the reshuffle.
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Ofori-Atta has been the finance minister since 2017.
During his time in office, he faced criticism for his handling of the country's economic crisis, which saw the Ghanaian currency plummet and eurobond yields soar on concerns about debt sustainability, but he faced criticism in parliament in December 2022. He barely survived a censure motion. After that, he served as a successful leader. He negotiated a deal to secure a $3 billion bailout from the International Monetary Fund and an agreement with bilateral creditors to restructure the West African nation's loans.
Ken Oforiatta
The timing of the cabinet reshuffle coincides with preparations for the December presidential election in which the ruling party's candidate and vice president, Mahamudu Bawumia, will seek to replace Mr. Akufo-Addo. Bawumia has opposed policies implemented by Ofori-Atta, including the controversial tax on electronic financial transactions, which he has vowed to abolish if he becomes president.
Godfred Bokpin, a finance professor at the University of Ghana, said: “The focus of this change appears to be on the December elections, where the flag bearers are looking to exert some influence.''
Ghanaian dollar bonds due in 2032 fell for a fifth consecutive day on Wednesday, the longest losing streak since November, according to data compiled by Bloomberg.
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The Ghanaian government last month reached an agreement with bilateral creditors for a $5.4 billion loan restructuring and has set a target date of March 31 to reach a similar agreement with commercial creditors. This change could cloud the outlook for eurobond review talks.
“It's difficult to know for sure whether this will slow down or accelerate the debt restructuring process,” said Adrian du Toit, director of emerging market economics research at AllianceBernstein. “The former is more likely and creates more uncertainty and risk, even more so with elections scheduled for later this year.”
Mr Adamu, 49, served as Deputy Minister of Energy before being appointed Minister of State at the Treasury. He holds a PhD in Petroleum Economics from the Energy, Petroleum and Minerals Law and Policy Center at the University of Dundee, UK, and a Master's and Bachelor's degree in Economics from the University of Cape Coast.
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