The International Monetary Fund (IMF) has pledged its commitment to help Ghana and other nations affected by the ongoing global tariff war. IMF Managing Director Kristalina Georgieva gave this assurance during the launch of the Global Policy Agenda at the IMF/World Bank Spring Meetings in Washington DC.
Georgieva stated that the IMF has tools and resources available to support any country that seeks assistance.
“We can rely on our policy tools to help any country. This includes financial support when needed,” she said. “Our focus remains on helping members maintain economic and financial stability.”
She urged affected countries to strengthen economic buffers and implement programs that protect against external shocks.
Ghana Urged to Act Swiftly
Georgieva encouraged Ghana and other African nations to take early steps to manage risks.
“There’s still room for action on fiscal measures. Build buffers before the shock hits,” she advised. “Ghana must continue to strengthen its fundamentals.”
She also called for stronger tax systems.
“Don’t make excuses. Focus on broadening the tax base. Reduce tax evasion and avoidance,” she added.
Tariff Effects Vary Across Africa
The IMF chief explained that the global tariff impact will affect African countries differently. Oil-producing countries like Nigeria face budget pressure due to falling prices. On the other hand, oil-importing countries may benefit from lower import costs.
She warned that low-income countries will face tough decisions and emphasized domestic revenue as essential.
“A country can’t function properly with a tax-to-GDP ratio below 15%,” she stated.
Central Banks Must Remain Watchful
Georgieva advised central banks in the region to monitor inflation while supporting economic growth.
“Watch the data and inflation trends. Strike a balance between growth and inflation control,” she noted.
She stressed that central banks must stay independent. “Credibility matters. Protect it.”
Boosting Trade Within Africa
Georgieva also called for more intra-African trade. She highlighted Africa’s natural resources, young population, and potential for economic growth.
“Africa has much to offer the world. With unity and collaboration, the continent can become an economic powerhouse,” she concluded.
