The Government of Ghana and the International Monetary Fund (IMF) have successfully reached a staff-level agreement on the fourth review of Ghana’s economic reform program under the Extended Credit Facility (ECF).
The agreement, announced following a two-week mission in Accra led by IMF Mission Chief Stéphane Roudet, remains subject to approval by the IMF Executive Board. Once approved, Ghana will unlock a disbursement of SDR 267.5 million (approximately US$370 million), bringing the total disbursements since May 2023 to approximately US$2.36 billion.
The IMF team visited Ghana from April 2 to April 15, 2025, to assess the country’s policy performance and progress in reform. While the review noted stronger-than-expected economic growth in 2024, driven by mining, construction, exports, and remittances, it also flagged significant challenges.
“Despite robust growth and higher reserves, the overall performance under the IMF-supported program deteriorated toward the end of 2024,” Roudet said.
Fiscal slippages, primarily due to the accumulation of unpaid obligations ahead of the 2024 elections, along with delayed reforms and missed inflation targets, weighed on the program’s progress.
To address these setbacks, the new administration has introduced corrective measures, including an audit of government payables and a revised 2025 budget aiming for a 1.5% primary surplus. Additional reforms in public financial management and tighter expenditure controls have also been adopted.
The IMF mission further engaged authorities on steps to strengthen social protection, improve public procurement, and enhance governance, especially in managing State-Owned Enterprises in the gold, cocoa, and energy sectors. Efforts to reduce energy sector arrears through quarterly tariff adjustments and structural reforms are also underway.
Monetary policy has been tightened by the Bank of Ghana to curb inflation, complementing ongoing fiscal consolidation. On the financial front, the IMF noted that Ghana is maintaining financial stability as it progresses with bank recapitalization and public bank reforms.
On debt sustainability, Ghana has signed a Memorandum of Understanding with its Official Creditors Committee under the G20 Common Framework and continues to negotiate with commercial creditors in line with IMF parameters.
The IMF team extended its appreciation to Ghanaian authorities for their transparent and collaborative engagement during the mission.
