Ghana’s ongoing efforts to stabilize its economy under the International Monetary Fund’s (IMF) support program have yielded a major milestone.
The IMF and the Government of Ghana have reached a staff-level agreement on the fourth review of Ghana’s three-year Extended Credit Facility (ECF) program. This agreement, once approved by the IMF Executive Board, will enable the disbursement of approximately US$370 million to support the country’s economic recovery and reform agenda.
The development follows a two-week mission to Accra, led by Stéphane Roudet, IMF Mission Chief for Ghana, from April 2 to April 15, 2025. The current 36-month ECF arrangement was originally approved in May 2023 and is worth a total of SDR 2.242 billion, or about US$3 billion. So far, Ghana has received SDR 1,708 million (around US$2.355 billion).
In a statement issued at the end of the mission, Mr. Roudet acknowledged Ghana’s economic performance in 2024, noting that growth exceeded expectations. This was largely attributed to strong output in the mining and construction sectors, along with an improved external sector performance driven by gold exports and increased remittances. As a result, Ghana’s international reserves grew significantly beyond the targets set under the ECF program.
“Growth in 2024 was higher than expected, underpinned by strong mining and construction activity. The external sector has seen a considerable improvement, driven by solid exports—particularly gold and, to a lesser extent, oil—and higher remittances.”
Stéphane Roudet
However, the mission also raised concerns about the deterioration in program performance toward the end of 2024. Fiscal slippages in the lead-up to the general elections resulted in a significant accumulation of payables, inflation rose above target levels, and several reform measures were delayed, especially in the fiscal, financial, and energy sectors.
In response, the new administration has introduced several corrective measures aimed at restoring confidence in the program and keeping its objectives on track. These include a more disciplined 2025 budget and comprehensive public financial management reforms.
Nature Of The Accumulated Payables
An audit is underway to verify the extent and nature of the accumulated payables, and the 2025 budget now targets a primary surplus of 1.5% of GDP, compared to the 3.25% primary deficit recorded in 2024.
“The authorities have enacted a 2025 budget that targets a 1½ percent of GDP primary surplus and adopted several public financial management reforms. The latter includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.”
Stéphane Roudet
Beyond fiscal adjustments, the IMF and the government also discussed strategies to strengthen Ghana’s structural foundations, particularly in fiscal management, procurement, and social protection. The aim is to better protect the most vulnerable populations affected by inflation and fiscal tightening.
Meanwhile, the Bank of Ghana has stepped up its monetary policy tightening, recently increasing the policy rate and reviewing its liquidity management. These moves are expected to help curb inflation in the months ahead.
On the structural front, the Ghanaian authorities reaffirmed their commitment to transparency and good governance, with a focus on improving the operations of State-Owned Enterprises (SOEs), especially in the gold, cocoa, and energy sectors. The reinstatement of quarterly electricity tariff adjustments, combined with reforms, is expected to reduce the sector’s financial shortfall and prevent new arrears from accumulating.
Financial stability is also being safeguarded through ongoing recapitalization of banks, while public banks are set to benefit from stronger oversight and governance.
Another important aspect of Ghana’s recovery plan is the ongoing debt restructuring under the G20 Common Framework. The country has signed a Memorandum of Understanding (MoU) with its Official Creditors Committee (OCC), marking a significant step toward restoring debt sustainability. Ghana is also working to reach agreements with commercial creditors, in line with IMF program parameters and comparability of treatment principles.
The IMF mission concluded with meetings involving key stakeholders, including Finance Minister Dr. Cassiel Ato Forson and Bank of Ghana Governor Dr. Johnson Asiama. The IMF expressed appreciation for the transparency and cooperation shown by the Ghanaian authorities.
As Ghana awaits final approval from the IMF Executive Board, the staff-level agreement represents a critical vote of confidence in the country’s economic reform efforts, even as challenges persist.
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