The International Monetary Fund (IMF) has concluded its fourth review of Ghana’s three-year program under the Extended Credit Facility (ECF), reaching a staff-level agreement with the government aimed at reinforcing economic stability and restoring fiscal discipline. The agreement, however, is still subject to approval by the IMF Executive Board.
An IMF delegation led by Stéphane Roudet, Mission Chief for Ghana, visited Accra from April 2 to 15, 2025, to assess progress on key policy and reform priorities. The ECF arrangement, initially approved in May 2023, provides Ghana with financial support totalling approximately US$3 billion.
Upon approval of this fourth review, Ghana will gain access to an additional SDR 267.5 million (around US$370 million), raising the total disbursement so far to approximately US$2.36 billion.
The Fund lauded Ghana’s stronger-than-expected economic growth in 2024, driven by robust mining and construction activities. Notably, the external sector recorded significant gains due to improved gold and oil exports, alongside increased remittances. These factors helped Ghana exceed its reserve targets under the program.
Despite these achievements, the IMF expressed concern over Ghana’s performance toward the end of 2024, citing election-related fiscal slippages and a delay in critical reforms. Preliminary data indicated a significant accumulation of arrears, with a primary deficit of about 3.25 percent of GDP—far from the targeted surplus of 0.5 percent.
In response, the new administration has enacted a 2025 budget targeting a primary surplus of 1.5 percent of GDP and rolled out a set of public financial management reforms. These include a strengthened fiscal responsibility framework and new expenditure commitment rules.
The IMF also held discussions with the government on further measures to strengthen public financial management and procurement systems, ensure disciplined fiscal execution, and expand social protection for vulnerable populations facing high inflation.
On the monetary front, the Bank of Ghana has raised its policy rate and is recalibrating its liquidity management operations to support tighter monetary conditions, in tandem with fiscal consolidation efforts aimed at curbing inflation.
A key focus of the review was on governance, transparency, and the management of State-Owned Enterprises (SOEs), particularly in the gold, cocoa, and energy sectors. In the energy sector, the IMF highlighted the importance of quarterly electricity tariff adjustments and structural reforms to address the sector’s financial shortfalls and prevent the build-up of new arrears.
The IMF further noted progress in Ghana’s public debt restructuring under the G20 Common Framework. A Memorandum of Understanding (MoU) with the Official Creditors Committee has been signed, and negotiations with commercial creditors are ongoing to reach a deal aligned with program goals and fair treatment principles.
The IMF team held talks with Finance Minister Mohammed Amin Adam, Bank of Ghana Governor Dr. Maxwell Opoku-Afari, and other senior officials and stakeholders.
“The IMF team would like to express its gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement,” the Fund concluded in its statement.
