Ghana has reached a staff-level agreement with the International Monetary Fund (IMF) following the third review of its $3 billion Extended Credit Facility (ECF). This agreement, achieved after a detailed review of the country's fiscal performance, will unlock $360 million in funding, contingent on the IMF Executive Board's approval. Once disbursed, Ghana's total receipts under the program will amount to approximately $1.92 billion since its inception in May 2023.
The IMF has expressed satisfaction with Ghana's economic progress, highlighting improved fiscal performance and a decline in inflation. The country's economic growth in the first half of 2024 exceeded expectations, driven by mining, construction, and telecommunications sectors. However, challenges such as a drought in northern Ghana, which threatens agricultural output, and energy sector inefficiencies were also noted. The Bank of Ghana's tight monetary policies are credited with controlling inflation and supporting economic stability.
One of the most significant achievements under the program is Ghana's success in restructuring its public debt. Following agreements with domestic creditors and official creditors under the G20 Common Framework, the country recently completed a Eurobond restructuring with an impressive 98% participation rate. Discussions are ongoing with other external creditors to ensure consistent treatment aligned with IMF program requirements.
Despite emerging challenges, including election-related spending pressures, Ghana is on track to achieve a primary fiscal surplus equivalent to 0.5% of GDP by the end of 2024. The IMF commended the government's commitment to key structural reforms, including measures to enhance revenue collection, control expenditures, and bolster social protection programs for vulnerable populations.
The agreement underscores Ghana’s improved external economic indicators, such as higher exports of gold and oil, increased remittances, and rising international reserves. These developments signal resilience and a path toward sustainable macroeconomic stability.
This collaboration between Ghana and the IMF remains pivotal for restoring investor confidence, ensuring debt sustainability, and fostering inclusive economic growth amidst global uncertainties. Continued adherence to the reform agenda will be crucial, especially in the context of the upcoming general elections【7】【8】【9】.
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