The International Monetary Fund (IMF) and the Government of Ghana have successfully negotiated a staff-level agreement regarding the fourth review of Ghana’s three-year Extended Credit Facility (ECF)-supported program. Upon receiving approval from the IMF Executive Board, this agreement will enable Ghana to access approximately US$370 million in financial assistance.
This announcement follows a mission led by Mr. Stéphane Roudet, the IMF Mission Chief for Ghana, which occurred in Accra from April 2 to April 15, 2025. The IMF is extending support under a 36-month ECF arrangement, initially sanctioned in May 2023, amounting to SDR 2.242 billion (around US$3 billion). At the end of the mission, Mr. Roudet released a statement that underscored both the recent successes and persistent challenges within Ghana’s economic framework.
He recognized that Ghana’s economy experienced growth exceeding expectations in 2024, primarily fueled by strong performance in the mining and construction sectors. Additionally, he highlighted a notable enhancement in the country’s external position, attributed to robust export activity—especially in gold—and increased remittances. However, despite these favorable trends, the IMF noted a significant decline in program performance towards the end of 2024.
Fiscal discrepancies before the general elections resulted in a considerable buildup of payables, while inflation surpassed program targets and several critical reforms faced delays. In response to these challenges, Ghana’s new administration has initiated a series of decisive actions, including the introduction of a more stringent 2025 budget and reforms in public financial management aimed at revitalizing program momentum.
The IMF mission also held discussions with Ghanaian authorities regarding the need to tackle structural weaknesses in fiscal management, procurement, and social protection, particularly for the most vulnerable populations affected by inflation and fiscal adjustments.
The Bank of Ghana’s monetary tightening measures, including a recent increase in the policy rate, are anticipated to assist in controlling inflation. On the structural side, the government has reaffirmed its commitment to reforms aimed at enhancing transparency and governance, particularly regarding the management of State-Owned Enterprises (SOEs) in the gold, cocoa, and energy sectors.
The IMF has also acknowledged Ghana’s ongoing advancements in its comprehensive debt restructuring initiatives, including recent progress under the G20 Common Framework. During the mission, IMF representatives conducted discussions with Finance Minister Dr. Cassiel Ato Forson, Bank of Ghana Governor Dr. Johnson Asiama, and other significant government officials.
The IMF conveyed its gratitude for the sustained cooperation and transparent interactions of the Ghanaian authorities.
