Ghana: Ghana is well positioned to exit the International Monetary Fund's US$3 billion Extended Credit Facility (ECF) programme when it ends in May 2026, says Dr. Johnson Pandit Asiama, Bank of Ghana (BoG) Governor. Governor Asiama stated that the country has started running ahead of programme targets on virtually all indicators, demonstrating a strong economic turnaround from the challenges experienced in the past few years.
According to Ghana News Agency, Dr. Asiama made these remarks at the Governor Talks Series on the sidelines of the 2025 IMF/World Bank Group Annual Meetings in Washington D.C, USA, speaking on the topic: 'From crisis to confidence: Ghana's journey to macroeconomic stabilisation.' He expressed optimism about Ghana's ability to exit the fund programme by next year, despite earlier uncertainties about its continuation.
Dr. Asiama attributed the challenges in the economy to several factors, including the aftermath of the 2022 domestic debt exchange programme (DDEP), a highly expansionary fiscal policy, exit from international financial markets, multiple sovereign downgrades, high liquidity, elevated inflation, and a rapidly depreciating exchange rate. Despite these challenges, the government proceeded with the programme and structural reforms, achieving stabilisation in the last eight months.
The governor highlighted that Ghana was exceeding expectations on the programme targets, with inflation declining from nearly 24 percent to 9.4 percent, reserves accumulation of 4.5 months, and upgrades from various rating agencies. He assured that the country would not compromise on its progress, even as it eases downward.
However, Dr. Asiama cautioned about the challenges that remain due to exposure to external risks from volatile commodity prices. He emphasized the need for sustained sound macroeconomic policies and adequate reserves as buffers against potential headwinds. He stressed the importance of coordinated stabilisation efforts and complementary efforts from fiscal authorities, particularly in food price management and fiscal discipline.
The three-year ECF arrangement was approved by the IMF Executive Board in May 2023 for a total amount of SDR 2.242 billion (approximately US$3 billion), aimed at restoring macroeconomic stability, ensuring debt sustainability, and fostering long-lasting and inclusive growth. The governor expressed gratitude to the IMF for its support throughout Ghana's stabilisation journey, describing the partnership as crucial to the programme's success.
While acknowledging the efficacy of IMF loan-supported programmes, the World Bank has encouraged Ghana to break away from its repeated reliance on such programmes to meet its sustainable macroeconomic stability needs. In its latest Policy Notes on the country, released in September, the World Bank underscored the urgent need for reform, urging Ghana to address governance failures marked by fiscal indiscipline and inefficiency.
