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Ghana has reached a critical milestone in its economic recovery efforts, securing a staff-level agreement with the International Monetary Fund (IMF) for a $370 million disbursement under its ongoing Extended Credit Facility (ECF) program.
The agreement, announced on April 15, follows a two-week IMF mission in Accra and represents the fourth review of Ghana’s three-year, $3 billion ECF arrangement approved in May 2023. Once ratified by the IMF Executive Board, the disbursement will bring Ghana’s total drawdown under the program to approximately $2.36 billion.
Speaking at the conclusion of the mission, IMF Mission Chief for Ghana, Stéphane Roudet, praised Ghana’s stronger-than-expected economic growth in 2024, driven by gains in the mining and construction sectors. He noted improved external conditions, with gold exports and remittance inflows helping Ghana significantly exceed international reserve targets.
However, the IMF flagged serious fiscal slippages during the election year, including an unexpected accumulation of government payables and missed inflation targets. Several reform benchmarks were also delayed.
In response, the new administration has introduced a tighter 2025 budget targeting a primary surplus of 1.5% of GDP, alongside key reforms in public financial management and procurement systems. These include enhanced fiscal responsibility rules and stricter expenditure controls.
The IMF also highlighted efforts to strengthen social safety nets for vulnerable populations affected by inflation and fiscal adjustments, and noted the Bank of Ghana’s increased policy rate as a sign of tighter monetary discipline aimed at curbing inflation.
On structural reforms, the government reaffirmed its commitment to improving governance and efficiency in State-Owned Enterprises (SOEs), particularly in the gold, cocoa, and energy sectors. The IMF welcomed the resumption of quarterly electricity tariff adjustments to address sector arrears.
Meanwhile, Ghana’s debt restructuring is progressing. The country has signed a Memorandum of Understanding with its Official Creditors Committee under the G20 Common Framework and is continuing negotiations with commercial creditors to ensure equitable treatment.
