- IMF staff and the Ghanaian authorities have reached staff-level agreement on a package of economic policies and reforms to conclude the fourth review of the 36-month ECF-supported program. Once the review is approved by the IMF Executive Board, Ghana will have access to about US$370 million in financing.
- Notwithstanding higher-than-expected growth and a further significant improvement in Ghana's external position last year, program performance deteriorated markedly at end-2024. Fiscal slippages in the run-up to the elections led to a large accumulation of payables; inflation exceeded program targets; and several reforms were delayed.
- Since the beginning of the year, the new authorities have taken bold measures to address policy and reform slippages and ensure achievement of program objectives. This includes enacting a strong budget and public financial management reforms; tightening monetary policy; and adjusting electricity prices.
Accra, Ghana: An International Monetary Fund (IMF) staff team, led by Mr. Stéphane Roudet, Mission Chief for Ghana, held meetings in Accra from April 2 to April 15, 2025, to discuss progress on the authorities' policy and reform priorities in the context of the fourth review of Ghana's three-year program under the Extended Credit Facility. The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.242 billion (about US$ 3 billion) on May 17, 2023.
At the end of the mission, Mr. Roudet issued the following statement:
"IMF staff and the Ghanaian authorities have reached a staff-level agreement on the fourth review of Ghana's economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to Executive Board consideration. Upon completion of the Executive Board review, Ghana would have access to SDR 267.5 million (about US$370 million), bringing the total IMF financial support disbursed under the arrangement, since May 2023, to SDR 1,708 million (about US$2,355 million).
"Growth in 2024 was higher than expected, underpinned by strong mining and construction activity. The external sector has seen a considerable improvement, driven by solid exports—particularly gold and to a lesser extent oil—and higher remittances. As a result, international reserves accumulation has far exceeded the ECF-supported program targets.
"Notwithstanding these achievements, overall performance under the IMF-supported program deteriorated markedly at end-2024. Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables. Inflation exceeded program targets. Several reforms and policy actions were delayed across the fiscal, financial, and energy sectors.
"Against this backdrop, the new authorities have taken bold measures to address policy slippages and ensure the program objectives remain within reach. On the fiscal front, the government has launched an audit of the payables to firm up the size and nature of the slippages. Based on preliminary estimates of new payables, the primary balance posted a deficit of some 3¼ percent of GDP (compared to a targeted surplus of ½ percent of GDP). To address these slippages, the authorities have enacted a 2025 budget that targets a 1½ percent of GDP primary surplus and adopted several public financial management reforms. The latter includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.
"Discussions with the authorities centered on possible additional measures needed to address structural weaknesses in the public financial management and procurement systems as well as steps to ensure fiscal execution remains consistent with program objectives. Engagement with the authorities also focused on measures aimed at strengthening key social protection programs to cushion the most vulnerable from the impact of high inflation and ongoing policy adjustment.
"The Bank of Ghana has recently increased its policy rate and is reviewing its liquidity management operations. The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.
"The mission also engaged the authorities on their wide-ranging structural reform program, with a focus on enhancing governance and transparency and strengthening State-Owned Enterprises management in the gold, cocoa, and energy sector. On the latter, the resumption of quarterly electricity tariff adjustments, combined with structural reforms, will help reduce the energy sector shortfall and stop the accumulation of new arrears. Financial stability is being maintained as recapitalization progresses and the authorities are committed to strengthening public banks.
"Ghana remains committed to completing its comprehensive public debt restructuring to restore sustainability. The Memorandum of Understanding (MoU) with Ghana's Official Creditors Committee (OCC) under the G20 Common Framework has been signed by all parties, and the focus is now on finalizing the bilateral agreements to implement the MoU. The authorities are also pursuing good-faith efforts in reaching an agreement with other commercial creditors on a debt treatment that is in line with program parameters and the comparability of treatment principles."
IMF staff met with Finance Minister Forson, Bank of Ghana Governor Asiama, and their teams, as well as representatives from various government agencies, and other stakeholders. The IMF team would like to express its gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement.
