IMF Backs Gov’t’s Fiscal Reforms, Sees Strong Prospects for Post-Programme Stability
- IMF Confident Fiscal Consolidation Will Outlast Current Programme
The International Monetary Fund (IMF) has expressed strong confidence that Ghana’s fiscal consolidation efforts will be sustained well beyond the expiration of its current bailout program, citing legal reforms, institutional safeguards, and government commitments as critical anchors for lasting fiscal discipline.
Speaking in response to a question from the Managing Editor of NorvanReports, Norvan Acquah-Hayford, at the sidelines of the just-ended IMF/World Bank Spring Meetings, Stéphane Roudet, IMF Mission Chief for Ghana, pointed to recent amendments to the country’s Public Financial Management (PFM) Act, which now legally enshrines a 1.5% primary fiscal surplus target as a significant guarantee for policy continuity.
“It’s not just an objective negotiated with the IMF. It is Ghanaian law now,” Roudet said. “That makes us quite confident that fiscal consolidation will be achieved going forward, helping tremendously with debt reduction and reinforcing the economy’s resilience.”
Mr. Roudet emphasised that, beyond political commitments, Ghana’s fiscal targets will be monitored by a dedicated institution, further reinforcing accountability mechanisms after the IMF-supported program concludes.
Regarding Ghana’s prospects for re-accessing international capital markets, He clarified that the IMF’s program assumptions project a market return in 2027, not immediately after the program’s scheduled conclusion in 2026. He described the timing of re-entry as deliberate, allowing for greater debt sustainability and financial credibility to be rebuilt.
“The program has been designed in such a way that, with IMF financing, World Bank support, and domestic market mobilisation, Ghana should be fully able to meet its financing needs without rushing back to the international markets,” the Ghana Mission Chief noted.
He further explained that Ghana’s temporary insulation from global financial market volatility, due to its current non-participation in external bond markets, serves as a strategic buffer amid a turbulent global environment.
Addressing broader risks to the program, Mr. Roudet played down the impact of the new U.S. tariffs on Ghanaian exports, noting that most of Ghana’s critical exports, such as oil, are unaffected and that the volume of affected trade is relatively small compared to total exports.
Moreover, he emphasised a positive aspect: Ghana’s external balances are receiving significant support from record-high gold prices, which are boosting foreign exchange reserves and strengthening the country’s balance of payments position.
“While there is volatility and turmoil in global financial markets, Ghana is somewhat protected for now and is benefiting from strong commodity prices, especially gold, which is very supportive of the external sector,” Stéphane Roudet, IMF Mission Chief for Ghana, concluded.
