The International Monetary Fund (IMF) has completed the fourth review of Ghana’s $3 billion Extended Credit Facility (ECF) programme, approving the immediate disbursement of $367 million to support the country’s economic recovery efforts. This brings Ghana’s total disbursements under the programme to about $2.3 billion.
While the IMF acknowledged Ghana’s strong growth performance in 2024, driven by robust activity in mining, agriculture, ICT, construction, and manufacturing, it flagged significant fiscal slippages and delayed reforms in the final quarter of the year. These setbacks, largely attributed to pre-election spending pressures, caused a marked deterioration in the country’s overall program performance.
Despite these challenges, the IMF noted that the new administration has taken decisive corrective measures to bring the programme back on track. These include:
- Passing a fiscally responsible 2025 budget aligned with programme goals
- Implementing public financial management reforms to strengthen expenditure control
- Tightening monetary policy to combat inflation
- Adjusting electricity prices to improve energy sector sustainability
The government is targeting a 1.5% of GDP primary fiscal surplus in 2025, to be achieved through revenue mobilisation and spending rationalisation, while still protecting the most vulnerable.
On the external front, the IMF praised Ghana’s improving external position, with strong exports (especially gold) and remittances contributing to a faster-than-expected accumulation of international reserves. This has exceeded programme targets and is expected to help stabilize the cedi, particularly when combined with the latest IMF disbursement and recent World Bank support.
Rebuilding Stability and Investor Confidence
The IMF noted progress in Ghana’s public debt restructuring, with the successful signing of a Memorandum of Understanding (MoU) with Official Creditors under the G20 Common Framework. Efforts are ongoing to finalize bilateral agreements and engage commercial creditors under terms that align with the programme.
The IMF also welcomed Ghana’s improving credit outlook, noting that key international rating agencies have upgraded the country’s rating in response to recent fiscal and structural reforms.
BoG Action and Financial Sector Reforms
The Bank of Ghana (BoG) has maintained a tight monetary stance to rein in inflation, which exceeded targets in late 2024 but has since shown signs of rapid decline. The central bank has also strengthened supervision of undercapitalized banks, enforced recapitalization, and implemented enhanced risk management protocols.
Looking ahead, the IMF emphasized the need to sustain reform momentum, complete the debt restructuring process, and reinforce fiscal discipline to ensure macroeconomic stability and long-term growth.
“The new administration has taken bold corrective actions to maintain the programme on track,” said IMF Deputy Managing Director Bo Li. “Combined with ongoing reforms and an improved external position, these efforts are set to support Ghana in reaching the goals of economic stabilization, rebuilding resilience, and fostering higher and more inclusive growth.”
As Ghana works to rebuild its economy, the IMF urged continued focus on improving SOE efficiency, especially in the energy and cocoa sectors, and on strengthening domestic revenue mobilisation to ensure a sustainable and inclusive recovery.
