The International Monetary Fund (IMF) has reached a staff-level agreement with the government of Ghana for the fourth review of the country’s Extended Credit Facility (ECF) programme, paving the way for a US$370 million disbursement once the IMF Executive Board grants final approval.
The agreement follows a two-week mission in Accra by an IMF team led by Mission Chief Stéphane Roudet, and comes amidst signs of economic resilience, despite policy slippages in the lead-up to the 2024 general elections.
“IMF staff and the Ghanaian authorities have reached a staff-level agreement on the fourth review of Ghana’s economic program under the Extended Credit Facility arrangement,” Mr Roudet said in a statement released on April 15. “Upon completion of the Executive Board review, Ghana would have access to SDR 267.5 million (about US$370 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to about US$2.355 billion.”
According to the IMF, Ghana recorded stronger-than-anticipated growth in 2024, driven largely by robust performance in the mining and construction sectors. External conditions also improved significantly, with strong gold exports, increased remittances, and a better-than-expected build-up of foreign reserves.
However, these gains were tempered by a “marked deterioration” in overall programme performance by the end of 2024. The Fund cited election-year fiscal slippages, inflationary pressures, and delays in key reforms across the fiscal, financial, and energy sectors.
“Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables. Inflation exceeded programme targets. Several reforms and policy actions were delayed,” Mr Roudet noted.
The Fund acknowledged that Ghana’s new leadership has since taken “bold measures” to address the challenges and get the programme back on track.
These include the introduction of a 2025 budget targeting a primary surplus of 1.5 per cent of GDP, up from a deficit of over 3 per cent recorded last year. Key public financial management reforms have also been enacted to curb expenditure overruns.
To strengthen oversight and transparency, discussions were held on measures to fix structural weaknesses in procurement and financial systems, while also reinforcing social protection for vulnerable citizens grappling with inflation.
“The authorities have enacted a 2025 budget that targets a 1½ per cent of GDP primary surplus and adopted several public financial management reforms,” Mr Roudet said. “This includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.”
The IMF welcomed recent steps by the Bank of Ghana to raise its policy rate, viewing the tightening of monetary policy and ongoing fiscal consolidation as necessary to curb inflation.
In the energy sector, the resumption of quarterly electricity tariff adjustments—coupled with wider reforms—is expected to ease the sector’s fiscal burden and halt the accumulation of new arrears.
Additionally, the mission reviewed progress in ongoing structural reforms, particularly efforts to improve governance and efficiency within state-owned enterprises in the cocoa, gold, and energy sectors.
On debt restructuring, the Fund commended Ghana’s continued commitment to restoring debt sustainability.
The Memorandum of Understanding with the Official Creditors Committee under the G20 Common Framework has been signed, and bilateral agreements to operationalise it are underway. Meanwhile, discussions with commercial creditors continue in line with IMF comparability principles.
The IMF team held discussions with Finance Minister Dr Cassiel Ato Forson, Bank of Ghana Governor Dr Maxwell Opoku-Afari, and other senior government officials and stakeholders during the visit. The team expressed appreciation for Ghana’s “continued open and constructive engagement.”
