Ghana Ranks as Africa’s Second Most Indebted Nation to IMF

Ghana has been identified as the second most indebted African country to the International Monetary Fund (IMF) in terms of concessional lending, according to the IMF’s Quarterly Finances report.

As of October 31, 2024, Ghana’s outstanding loans to the IMF amounted to $2.914 billion, representing 17% of Africa’s total borrowings from the institution. Only the Democratic Republic of Congo surpassed Ghana with $2.256 billion in Special Drawing Rights (SDRs). Zambia ranked third with $1.272 billion in outstanding loans.

This financial strain is attributed to Ghana’s ongoing economic crisis, which led the country to seek a $3 billion bailout package from the IMF in January 2023. Under the Economic Credit Facility program, Ghana has so far received $1.92 billion.

Concessional lending refers to loans provided by the IMF at low-interest rates and extended repayment periods, aimed at supporting low-income countries in achieving economic development and poverty reduction.

Ghana, like Zambia, has defaulted on its debt obligations, prompting reliance on IMF assistance to stabilize its economy. The country’s growing indebtedness underscores the need for urgent reforms and fiscal discipline to address its economic challenges.