- The IMF has completed the fourth review of Ghana’s Extended Credit Facility, approving an immediate disbursement of $367 million and bringing total support to $2.3 billion.
- Despite strong economic growth, Ghana’s performance deteriorated at the end of 2024 due to election-related fiscal slippages, delayed reforms, and inflation exceeding targets.
- Growth in 2024 and early 2025 outperformed expectations, led by mining, agriculture, ICT, manufacturing, and construction sectors.
- The external sector improved significantly as gold exports and higher remittances boosted international reserves beyond IMF program targets.
- To correct the slippages, the new administration is targeting a 1.5 percent primary fiscal surplus in 2025 through stronger budget discipline.
- Key measures include electricity price adjustments, enhanced revenue collection, and spending cuts that safeguard the most vulnerable.
- The Bank of Ghana has tightened monetary policy, rebuilt reserves, and strengthened oversight of weak banks to preserve financial stability.
- The government is tackling inefficiencies in state-owned enterprises, particularly in the energy and cocoa sectors, to contain fiscal risks.
- Ghana signed a Memorandum of Understanding with its official creditors and is progressing in debt restructuring talks with commercial creditors.
- Reflecting these reforms and fiscal efforts, Ghana has received credit rating upgrades from major international agencies.
So what?
While Ghana has made strides in growth and external stability, sustaining reforms, especially in public finance and structural governance, will be critical to avoid repeating past cycles. Staying the course now will determine whether the country emerges more resilient or falls back into fragility.
