The Government of Ghana and the International Monetary Fund (IMF) have successfully reached a staff-level agreement on economic policies and reforms as part of the fourth review under the ongoing 36-month Extended Credit Facility (ECF) programme. This agreement is now awaiting final approval from the IMF’s Executive Board.

Once approved, Ghana will receive Special Drawing Rights (SDR) amounting to 267.5 million, which is approximately $370 million. This would bring the total IMF disbursements to Ghana since the programme began in May 2023 to SDR 1.708 billion—equivalent to around $2.355 billion.

In its official statement, the IMF acknowledged that Ghana’s economy performed better than projected in 2024. Strong growth in the mining and construction sectors contributed to this improved performance. The external sector also saw significant gains due to robust gold exports, steady oil production, and increased remittance inflows. These factors enabled the country to accumulate international reserves far beyond what the programme had targeted.

Despite these gains, the IMF noted that overall programme performance deteriorated sharply towards the end of 2024. Fiscal discipline weakened in the lead-up to the general elections, resulting in a significant build-up of unpaid bills. Inflation also surpassed the agreed targets, and several key reforms—particularly in the fiscal, financial, and energy sectors—were delayed.

In response to these setbacks, the current administration has initiated decisive steps to restore stability and maintain the programme’s objectives. The government has begun an audit of outstanding payables to determine the exact scope of fiscal slippages. Based on preliminary findings, the primary fiscal balance for 2024 showed a deficit of about 3.25% of GDP, in contrast to the intended surplus of 0.5%.

To correct this, the 2025 Budget now aims for a primary surplus of 1.5% of GDP. Additionally, the government is implementing a series of public financial management reforms. These include strengthening the fiscal responsibility framework and introducing stricter expenditure control measures.

The IMF team, which visited Ghana recently, held discussions with key officials including Finance Minister Dr. Cassiel Ato Forson, Bank of Ghana Governor Dr. Johnson Asiama, and other government representatives. Talks centered on broader structural reforms aimed at improving governance, boosting transparency, and enhancing the performance of state-owned enterprises in the gold, cocoa, and energy sectors.

The IMF commended the Ghanaian authorities for their collaborative spirit and reiterated its support for the country’s ongoing reform efforts.