Although Ghana passed the fifth review of its current IMF programme, it is emerging that the review took a hard, practical look at whether the country is truly fixing the roots of its economic troubles or merely buying time.
Although the IMF team described Ghana’s performance as “broadly satisfactory”, at the centre of the discussions was one clear question of whether Ghana building an economy that can stand on its own again despite shocks.
In all, the IMF team and the authorities in Ghana, according to the latest IMF Country Report on Ghana, discussed 8 major issues before passing the review.
The issues ranged from the general macroeconomy to how the country can protect the vulnerable, and not forgetting its outstanding debt structuring exercise.
Below are the 8 issues that were discussed during the review exercise;
Sustaining Macroeconomic Adjustment & Restoring Debt Sustainability
First, the IMF examined efforts to sustain macroeconomic adjustment and restore debt sustainability. In simple terms, this means checking whether government spending, borrowing, and revenues are finally being brought under control so Ghana does not fall back into another debt crisis.
Advancing Fiscal Consolidation While Protecting the Vulnerable
The review also focused on fiscal consolidation, but with a human face. While the government is expected to tighten spending and raise revenues, the IMF stressed the need to protect the most vulnerable, ensuring that budget cuts do not worsen hardship for low-income households.
Prudent Monetary Policy & Promoting Flexible Exchange Rate
On monetary policy, the emphasis was caution and discipline. The IMF reviewed whether the Bank of Ghana is keeping inflation in check, allowing the cedi to move freely based on market forces, and rebuilding foreign reserves to cushion the economy against external shocks.
Reforming Policy Frameworks to Support Macroeconomic Stability & Debt Sustainability
Another key area was reforming policy frameworks and institutions. This is about strengthening the rules, laws, and systems that guide economic decisions, so stability does not depend on personalities but on strong institutions that endure.
Tackling Energy Sector & Cocoa Sector Challenges
The IMF also turned its attention to long-standing problems in the energy and cocoa sectors. These sectors are critical to Ghana’s economy, yet plagued by inefficiencies and financial losses. Fixing them is essential to reducing pressure on the budget and boosting exports.
Preserving Financial Stability in the Wake of Domestic Debt Restructuring
Financial stability featured prominently, especially after the domestic debt restructuring. The Fund assessed whether banks and financial institutions remain strong enough to support businesses and households without triggering new risks.
Strengthening Governance & Transparency
Governance and transparency were equally important. The IMF reviewed steps to improve accountability, reduce waste, and ensure public funds are used as intended, a key factor in rebuilding public and investor trust.
Bolstering Private Sector-led & Inclusive Growth
Finally, the review looked at how Ghana can drive private sector-led and inclusive growth. This means creating conditions for businesses to expand, jobs to grow, and prosperity to reach more people, not just a few.
The Bottomline
Taken together, the fifth review shows the IMF is not just checking numbers, but examining whether Ghana is laying the foundation for a more resilient, fair, and sustainable economy.
