Ghana has cleared a critical hurdle in its economic recovery program, securing a staff-level agreement with the International Monetary Fund (IMF) to unlock $370 million under its Extended Credit Facility (ECF).

The fourth review of the bailout program paves the way for the disbursement, pending final approval by the IMF Executive Board in the coming weeks.

The IMF acknowledged Ghana’s “stronger-than-expected growth” and improvements in its external balance in 2024 but flagged significant setbacks toward the year’s end, including election-related fiscal slippages, a buildup of unpaid obligations, and delayed reforms. Inflation also overshot program targets, complicating efforts to stabilize the economy. Despite these challenges, the Fund expressed confidence in the government’s recent corrective measures, citing “bold actions” to tighten monetary policy, adjust energy tariffs, and strengthen public financial management since early 2025.

“These efforts are critical to restoring macroeconomic stability, debt sustainability, and laying the foundation for inclusive growth,” the IMF stated. If approved, the $370 million tranche would bolster Ghana’s foreign reserves, ease fiscal pressures, and support ongoing austerity measures.

The agreement follows a week-long mission by IMF officials, who met with Finance Minister Ato Forson, Bank of Ghana Governor Dr. Johnson Asiama, and representatives from key sectors including gold, cocoa, and energy. Discussions focused on structural reforms to enhance governance, transparency, and management of state-owned enterprises a priority for rebuilding investor trust after years of economic turbulence.

Ghana’s ECF program, initiated in 2023, aims to restore fiscal discipline following a debt default and soaring inflation that peaked at 54% in 2022. While the latest review signals progress, the IMF emphasized the need for sustained reform momentum, particularly as the country navigates the political and economic complexities of an election cycle.

The potential disbursement arrives as Ghana seeks to reassure international partners and domestic stakeholders of its commitment to long-term stability. Analysts note that Executive Board approval would mark a pivotal step in consolidating gains, though challenges persist, including managing public debt projected at 55% of GDP in 2025 and mitigating social discontent over austerity.

As Accra awaits the Fund’s final decision, the outcome will be closely monitored for its implications on Ghana’s access to global capital markets and its ability to balance fiscal rigor with growth imperatives in a region increasingly wary of debt distress.