Cabinet reshuffle
President Akufo-Addo has reshuffled his government, reassigning Deputy Trade and Industry Minister Stephen Amoah as Deputy Minister for…
President Akufo-Addo has reshuffled his government, reassigning Deputy Trade and Industry Minister Stephen Amoah as Deputy Minister for Finance after the passing of Deputy Finance Minister Dr John Kumah. Following Stephen Amoah’s reassignment, President Akufo-Addo appointed Kofi Ahenkorah Marfo as Deputy Minister-designate for Trade and Industry, pending parliamentary approval. Mr Akufo-Addo has removed Dr Ammishaddai Owusu-Amoah as the Ghana Revenue Authority (GRA) Commissioner-General and dissolved the GRA board without providing a specific reason. Julie Essiam has been appointed as his replacement. Pressure for Ammishaddai’s removal stemmed from the fact that he had surpassed public officers’ legal age limit.
President Akufo-Addo has less than nine months left in his term and faces a significant challenge in addressing various economic issues, especially revenue generation. The recent reshuffle, which involves dissolving boards and reassigning ministers and key figures in Ghana’s revenue collection sector, is driven by the need to realise the demanding revenue goals outlined in the ongoing $3 billion IMF programme. The controversy surrounding Dr Ammishaddai Owusu-Amoah’s tenure without a contract and his age exceeding the maximum for public service had gathered momentum. As a result, President Akufo-Addo’s decision to remove him as Commissioner-General of the Ghana Revenue Authority (GRA) and dissolve the GRA board, without citing a specific reason, was not unexpected; for many, it was long overdue. What surprised many was the revelation that he had been operating with a contract retroactively awarded by the president, leading to further public outcry. Official contract documents show that President Akufo-Addo issued two retroactive contracts to the Commissioner-General, signed on Tuesday, 26 March 2024, by the Secretary to the President, Nana Bediatuo Asante. The first contract covered two years, from 11 October 2021, to 10 October 2023, while a subsequent contract extended from 11 October 2023 to 31 March 2024. These documents confirm that the GRA leader was indeed serving as the head of Ghana’s premier revenue institution without a formal contract offer from the president. We have also learned that the ongoing transformations at the Ghana Revenue Authority, overseen by the Finance Minister, are fostering renewed trust within the investor community. This is crucial as Ghana readies itself for another round of assessments under the IMF programme. The country anticipates receiving approximately $720 million from the Fund this year, split into two tranches: the first $360 million expected in the second quarter, followed by the remaining $360 million scheduled to hit the Bank of Ghana’s account by November 2024 before the country heads to the polls to elect a new President and 276 Members of Parliament. Unlocking these foreign exchange reserves requires Ghana to meet crucial revenue targets, with the Ghana Revenue Authority playing a pivotal role. Additionally, there is the challenging task of persuading commercial creditors, who hold over 43% of Ghana’s external debt, to accept up to a 40% reduction in principal alone. Former Finance Minister Ken-Ofori Atta, who oversaw Ghana’s borrowing of approximately $11 billion from the Eurobond market in under four years, has been replaced. Despite securing a debt moratorium from Ghana’s bilateral creditors, co-chaired by China and France, a new Finance Minister, Dr Amin Adam, has been appointed. Dr Adam was instrumental in convincing Independent Power Producers to restructure their dollar-denominated debts. It is understood that Ken Ofori-Atta faced diminishing favour from domestic and foreign investors, with over 90 Members of Parliament from the ruling party calling for his removal. We also understand that Dr Amin Adam’s appointment aims to create a renewed environment conducive to smooth commercial debt restructuring, a key step toward unlocking the next IMF disbursements. Ghana’s urgent need for revenue pushes the president to take decisive action to stabilise the economy and build political capital, setting the stage for Vice President Dr Bawumia’s future leadership.