IMF Fourth Review: Ghana Reaches Staff-Level Agreement with IMF; Total Disbursements to Reach $2.3 Billion
Ghana and the International Monetary Fund (IMF) have reached a staff-level agreement on a comprehensive package of economic policies and reforms, paving the way for the disbursement of a further US$370 million under the country’s ongoing US$3 billion bailout programme.
The agreement, which concludes the fourth review of Ghana’s 36-month Extended Credit Facility (ECF), remains subject to approval by the IMF’s Executive Board. Upon approval, Ghana will receive Special Drawing Rights (SDR) 267.5 million, bringing total disbursements since the start of the programme in May 2023 to SDR 1.708 billion (approximately US$2.36 billion).
In a statement issued following the conclusion of the staff mission, the IMF noted that Ghana’s economic recovery was stronger than anticipated in early 2024, underpinned by robust activity in the mining and construction sectors.
“The external sector has seen a considerable improvement, driven by solid exports—particularly gold and, to a lesser extent, oil—and higher remittances,” the Fund noted. “As a result, international reserves accumulation has far exceeded the ECF-supported programme targets.”
However, the Fund cautioned that despite the encouraging growth and external performance, overall programme execution weakened significantly by the end of 2024.
“Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables,” the IMF said. “Inflation exceeded programme targets. Several reforms and policy actions were delayed across the fiscal, financial, and energy sectors.”
The setback in fiscal discipline—particularly in the months leading to elections—raises questions about the sustainability of Ghana’s fiscal consolidation drive, which remains central to the success of the IMF-supported programme.
The forthcoming Executive Board review will be closely watched by investors and development partners as the country seeks to stabilise its macroeconomic environment, restore debt sustainability, and sustain the momentum of structural reforms.
