Ghana Retains Top Spot as Africa’s Largest Debtor to the IMF with 35.3% Loan Increase in 2023

Ghana has become Africa’s largest debtor to the International Monetary Fund (IMF) once again, with its debt increasing by 35.3% in the second quarter of 2023. This surge is due to a $600 million bailout from the IMF aimed at revitalizing Ghana’s economy. As of July 31, 2023, Ghana’s outstanding loans to the IMF reached $2.227 billion, a significant rise from $1.246 billion just three months earlier.

Despite this growing debt, Ghana managed to repay $10.55 million to the IMF during this period. Ghana’s debt to the IMF represents 9.55% of Africa’s total IMF debt, which amounts to SDR 17.68 billion. Importantly, Ghana’s loans from the IMF come with favorable terms, including low-interest financing, which is crucial for its economic recovery.

The Democratic Republic of Congo and Kenya are the second and third most indebted African countries to the IMF, with DR Congo owing SDR 1.142 billion and Kenya owing SDR 1.008 billion. Both received disbursements from the IMF to support their balance of payments.

Sudan and Uganda are the fourth and fifth most indebted African nations to the IMF, with debt exposure of SDR 992 million and SDR 812 million, respectively. These countries also received IMF disbursements to enhance their fiscal stability.

Overall, the rest of Africa’s debt to the IMF totals SDR 11.32 billion, highlighting ongoing financial challenges across the continent. Ghana’s rising debt levels underscore the delicate balance between economic recovery and managing debt sustainability in the region.