Accra: An International Monetary Fund (IMF) staff and the Ghanaian authorities have reached a staff-level agreement on the fourth review of Ghana's economic programme under the Extended Credit Facility arrangement. This staff-level agreement is subject to Executive Board approval.
According to Ghana News Agency, 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$2.355 billion). The discussions were led by Mr. St©phane Roudet, Mission Chief for Ghana, during the meetings in Accra from April 2 to April 15, 2025, focusing on the authorities' policy and reform priorities in the context of the fourth review.
The arrangement was initially approved by the IMF Executive Board on May 17, 2023, for a total amount of SDR 2.242 billion (about US$ 3 billion). Mr. Roudet highlighted that growth in 2024 exceeded expectations, supported by strong mining and construction activity. The external sector also improved significantly due to robust exports, particularly gold, and increased remittances, leading to international reserves accumulation surpassing programme targets.
However, Mr. Roudet noted that performance under the IMF-supported programme deteriorated at the end of 2024. Preliminary fiscal data indicated slippages before the 2024 general elections, with significant accumulation of payables. Inflation exceeded programme targets, and several reforms and policy actions were delayed in fiscal, financial, and energy sectors.
To address these challenges, the new authorities have implemented measures to rectify policy slippages and maintain programme objectives. This includes a fiscal audit to assess the slippages' size and nature, revealing a primary balance deficit of 3¼ percent of GDP against a targeted surplus of ½ percent. The 2025 budget aims for a 1½ percent GDP primary surplus, alongside public financial management reforms, including a fiscal responsibility framework and stricter expenditure rules.
Discussions with authorities also focused on additional measures to address structural weaknesses in public financial management and procurement systems. The aim is to ensure fiscal execution aligns with programme objectives and strengthen social protection to support vulnerable populations amid high inflation and policy adjustments.
The Bank of Ghana has increased its policy rate and is reviewing liquidity management operations. This monetary policy tightening, coupled with fiscal consolidation, is expected to reduce inflation. The mission also discussed structural reforms with authorities, emphasizing governance, transparency, and State-Owned Enterprises management in the gold, cocoa, and energy sectors.
Quarterly electricity tariff adjustments and structural reforms are expected to reduce energy sector shortfalls and prevent new arrears. Financial stability is maintained as recapitalization progresses, and authorities are committed to strengthening public banks. Ghana remains focused on completing its comprehensive public debt restructuring to restore sustainability.
The Memorandum of Understanding with Ghana's Official Creditors Committee under the G20 Common Framework has been signed, with efforts underway to finalize bilateral agreements. The authorities are also working on reaching a debt treatment agreement with commercial creditors, in line with program parameters.
IMF staff engaged with Dr. Ato Forson, Finance Minister, Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, and other stakeholders during their visit. The IMF team expressed appreciation for the Ghanaian authorities' continued open and constructive engagement.
