The International Monetary Fund (IMF) Executive Board has completed the third review of Ghana’s $3 billion Extended Credit Facility (ECF) program, a 36-month initiative launched in May 2023. The review’s conclusion unlocks an immediate disbursement of approximately $360 million, bringing the total disbursement under the program to $1.9 billion.
The IMF praised Ghana’s economic reforms and policy adjustments, describing the outcomes as “encouraging.” Deputy Managing Director Bo Li highlighted the progress, stating that Ghana’s economic strategy is “delivering on its objectives,” with improvements in growth and fiscal performance.
“The economy is showing clear signs of stabilisation,” Li noted, attributing the progress to macroeconomic policy adjustments and structural reforms aimed at restoring stability, ensuring debt sustainability, and promoting inclusive growth.
Key milestones under the program include a rapid recovery in economic growth, declining inflation, and stronger fiscal and external positions. Ghana has also restructured its domestic debt and Eurobonds in line with the program’s targets. While engagements with external creditors for further debt restructuring are ongoing, the government’s fiscal discipline has yielded a primary surplus of 0.5% of GDP, with a target of 1.5% by 2025.
The Bank of Ghana’s monetary policies have helped reduce inflation and rebuild international reserves. Efforts to stabilise the financial sector have also been significant, with measures supporting the recapitalisation of state-owned and private banks to ensure their viability.
Bo Li stressed the importance of maintaining reform momentum, particularly in addressing structural vulnerabilities in key sectors like energy and cocoa. He called for sustained fiscal policy adjustments before and after the elections to support social programs and bolster economic resilience.
Looking forward, the IMF urged Ghana to enhance tax administration and expenditure control, modernise fiscal responsibility frameworks, and tackle challenges in the energy sector to mitigate fiscal risks. Improved governance and transparency were also highlighted as critical to attracting private sector investment and creating jobs.
The IMF reaffirmed its commitment to supporting Ghana’s journey toward sustainable growth, emphasising that steadfast reform implementation is vital for achieving long-term macroeconomic stability and poverty reduction.
