The Institute of Economic Affairs (IEA) has cautioned that Ghana could soon return to the International Monetary Fund (IMF) for yet another bailout if policymakers fail to address deep-rooted structural flaws in the economy.
At a round-table on Ghana’s mining regime, IEA Board Chairman, Charles Mensa, underscored that the country’s fiscal fragility remains unresolved despite ongoing reforms under the $3 billion IMF programme launched in 2023.
“For the record, we have been to the IMF for the seventeenth time, asking for a bailout meaning we have gone bankrupt seventeen times, Ghana is one of the largest gold producers in the world, yet with all these resources, we keep going bankrupt. Why? Because we have no control over our natural resources.” Mensa said.
He stressed that Ghana’s inability to fully leverage its mineral wealth, particularly gold, exemplifies the broader problem of poor resource governance. According to Mensa, reversing the cycle requires “bold and pragmatic measures” to strengthen domestic revenue mobilization, enforce fiscal discipline, and reduce over-reliance on external financing.
Ghana first turned to the IMF in 1966 and has since returned 17 times, often as a result of persistent budget deficits, currency volatility, and debt sustainability concerns. The latest three-year programme, which runs until 2026, aims to stabilize the country’s debt position and restore investor confidence. While progress has been made, the IEA warned that the real test will come once the current facility ends.
Analysts say Ghana’s history of policy reversals and weak enforcement of fiscal rules has undermined past IMF-supported programmes. The IEA warned that without decisive action, Ghana risks falling back into the same pattern.
The think tank urged government to restructure its approach to natural resource management, particularly by capturing more value from the mining sector, strengthening accountability, and directing revenues into long-term development priorities.
“Unless we rebalance how we manage our resources and instill fiscal discipline, the same imbalances that took us to the IMF seventeen times will send us there again,” the IEA noted.
