Ghana's new president, John Mahama, has taken a significant step towards fulfilling his promise to the International Monetary Fund (IMF) by reducing the number of government ministries from 30 to 23. This move is part of an austerity policy aimed at cutting costs and restoring the country's economy, which has been struggling with high inflation and a depreciating currency.

The decision to trim down the ministries was disclosed by President Mahama in an email, and it marks a significant shift in the country's governance structure. The move is seen as a key step towards meeting the conditions of the $3 billion, three-year loan approved by the IMF in May 2023. Ghana had been seeking financing from the IMF since 2022, and the loan was granted on the condition that the country would implement austerity measures, including reducing the size of its government.

President Mahama, who was sworn in on January 7, 2025, had campaigned on a promise to restore Ghana's economy, partly with the aid of the IMF's preexisting loan. During his presidential campaign, he noted that he would review the loan agreement but had no plans to reject it. Instead, he aimed to make adjustments within the program to suit the country's reality.

The IMF loan was granted to Ghana after the country's economy began to deteriorate, with inflation figures rising and the currency depreciating significantly. The loan was seen as a lifeline to help the country recover, but it came with strict conditions, including the need for Ghana to reduce its government size and implement austerity measures.

President Mahama's decision to cut down the ministries is seen as a significant step towards meeting these conditions and restoring Ghana's economy. The move is expected to have far-reaching implications for the country's governance structure and its ability to manage its finances effectively.

It is worth noting that President Mahama is no stranger to the presidency, having served as president from 2012 to 2017. His path to the presidency began while serving as vice president under President John Atta Mills, and he was sworn in as president after Mills' unexpected death in 2012.

As Ghana navigates its economic challenges, President Mahama's decision to cut down the ministries is seen as a crucial step towards restoring the country's economy and meeting its obligations to the IMF. The move is expected to have significant implications for the country's future, and it will be closely watched by economists and policymakers around the world.