An International Monetary Fund (IMF) delegation is expected in Accra this weekend, beginning February 8, 2025, to engage the Ghanaian government in critical discussions regarding the country’s economic situation and the upcoming 2025 Budget. The high-level talks, scheduled to last five days, will focus on various fiscal and financial matters as Ghana continues its engagement with the IMF to stabilize its economy.
Sources indicate that the 2025 Budget is expected to be presented to Parliament in March 2025. The discussions will assess Ghana’s progress in meeting IMF conditions and examine the government’s strategies to address major economic challenges, including negotiations with external commercial creditors and the country’s growing energy sector debt.
One of the key topics on the agenda is Ghana’s energy sector. The IMF team is reportedly seeking further clarity on the government’s plans to tackle ongoing challenges in the electricity sector, including discussions on the potential privatization of some operations of the Electricity Company of Ghana (ECG). The issue of energy sector debt has been a major concern, with implications for both fiscal stability and investor confidence in the country.
According to JoyBusiness, this visit does not constitute a formal review mission but rather an engagement focused on Ghana’s economic outlook and budgetary plans. However, the IMF is expected to conduct its fourth review of Ghana’s performance under the ongoing economic program later this year. This review, which will be based on fiscal data ending December 2024, will be critical in determining whether Ghana qualifies for the next tranche of IMF financial support. If the country meets the necessary requirements, the IMF is expected to release additional funds to the Bank of Ghana around June 2025.
A major area of focus for the IMF in its engagement with Ghana has been revenue mobilization and debt sustainability. As part of its economic recovery program, the Ghanaian government has been working on policies to improve tax collection, enhance domestic revenue generation, and reduce the country’s debt stock to more sustainable levels. The IMF is expected to scrutinize the government’s 2025 budget to ensure it aligns with these objectives and remains consistent with the terms of the IMF-supported program.
Ghana’s program with the IMF has been instrumental in stabilizing the economy, particularly after facing significant financial difficulties in recent years. With inflationary pressures, a weakened currency, and high debt levels, the country’s collaboration with the IMF remains crucial in restoring macroeconomic stability.
As the IMF team begins its engagements in Accra, stakeholders will be keenly observing the discussions and their potential impact on Ghana’s economic trajectory in the coming months.
blogpay
Total Comments: 0