The International Monetary Fund (IMF) has approved the immediate disbursement of $367 million to Ghana, following the completion of the fourth review of the country's three-year Extended Credit Facility (ECF) arrangement. This ECF, valued at $3 billion, is slated to conclude in 2026. The IMF's decision reflects a recognition of Ghana's economic progress and commitment to reform, while also highlighting key areas that require continued attention.
Positive Economic Indicators
The IMF review noted stronger-than-anticipated economic growth in 2024 and the first quarter of 2025. This growth has been fueled by robust activity across several key sectors, including:
- Mining
- Agriculture
- Information and Communication Technology (ICT)
- Manufacturing
- Construction
Furthermore, Ghana's external sector has demonstrated considerable improvement, driven by:
- Strong export performance, particularly in gold and, to a lesser extent, oil.
- Increased remittances.
IMF Recommendations for Sustained Growth
Despite these positive developments, the IMF emphasized the importance of maintaining fiscal discipline and implementing further reforms to ensure long-term economic stability and inclusive growth. Key recommendations include:
- Fiscal Discipline: Maintaining strict adherence to budgetary targets and avoiding excessive spending.
- Debt Restructuring: Completing the ongoing debt restructuring process to alleviate financial pressures and ensure debt sustainability.
- Revenue Mobilization: Enhancing domestic revenue collection through improved tax administration and broadened tax base.
- State-Owned Enterprises (SOEs) Efficiency: Improving the operational efficiency and financial performance of SOEs, particularly in the energy sector.
- Financial Sector Stability: Strengthening the stability and resilience of the financial sector to safeguard against potential risks.
Bo Li, Deputy Managing Director of the IMF, acknowledged that while there were policy setbacks and reform delays in late 2024, the new administration has taken decisive corrective actions to keep the program on track. These measures, combined with ongoing reforms and an improved external position, are expected to support Ghana in achieving its goals of economic stabilization, rebuilding resilience, and fostering higher and more inclusive growth.
Government's Commitment to Reform
The IMF lauded the government for aligning the 2025 budget with the program's objectives, enacting an enhanced fiscal responsibility framework, making progress in rebuilding international reserves, and taking steps to reduce inflation. These efforts demonstrate a strong commitment to implementing the necessary reforms for sustainable economic development.
Key Priorities for the Future
Mr. Bo Li emphasized that staying the course of fiscal adjustment and completing the debt restructuring are crucial for ensuring fiscal sustainability. He also highlighted the importance of:
- Continued efforts to enhance domestic revenue mobilization.
- Streamlining non-priority expenditure.
- Creating space for development priorities and enhanced social safety nets.
- Addressing challenges in the energy sector and related arrears to contain fiscal risks. Improving SOEs efficiency.
Ministry of Finance's Perspective
The Ministry of Finance welcomed the IMF's approval, stating that it reflects Ghana's unwavering commitment to fiscal discipline and strategic economic transformation. According to a statement, the ministry believes that its comprehensive macroeconomic policies and carefully crafted structural reforms are delivering tangible results that are recognized and supported by the international community.
The ministry further emphasized that the approval marks another significant step forward in Ghana's economic recovery journey, demonstrating that the reform agenda is not only working but also exceeding expectations and rebuilding confidence in the nation's financial future.
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