An International Monetary Fund (IMF) delegation has wrapped up a five-day assessment of Ghana’s economic recovery efforts, signaling a critical evaluation of the country’s compliance with its $3 billion bailout program next year.
The visit, led by IMF mission chief Stéphane Roudet, focused on gauging Ghana’s adherence to fiscal reforms tied to the Extended Credit Facility (ECF) agreement amid persistent economic headwinds.
Speaking at the close of the mission on February 14, Roudet confirmed “fruitful discussions” with Ghanaian officials, including President John Mahama, Finance Minister Dr. Alex Amoah Forson, and Bank of Ghana Acting Governor Daniel Asiama. The talks centered on recent macroeconomic trends and early preparations for the 2025 national budget, which will shape Ghana’s post-crisis fiscal strategy.
While the IMF acknowledged “progress” in meeting reform benchmarks, Roudet clarified that a formal verdict on Ghana’s performance will come during the fourth review of the ECF program, scheduled for April 2025. This assessment will determine whether Ghana qualifies for further disbursements from the 36-month rescue package approved in May 2023 to stabilize its debt-distressed economy.
The IMF team’s findings come as Ghana navigates uneven progress in curbing inflation, rebuilding foreign reserves, and restructuring $5.4 billion of its external debt under the G20 Common Framework. Though inflation has dipped from a peak of 54% in December 2022 to 23% as of January 2024, food prices remain volatile, and the cedi has faced renewed pressure in recent weeks.
Key sticking points include delays in implementing revenue-boosting measures, such as widening the tax base and reducing energy sector losses. Analysts warn that political tensions ahead of the December 2024 general elections could further complicate reforms. “The government cannot afford to ease austerity measures prematurely,” said Franklin Cudjoe, director of local think tank IMANI Africa. “Slowing reforms now risks derailing hard-won gains.”
The IMF did not disclose immediate adjustments to Ghana’s program targets but stressed the need for “sustained commitment” to structural reforms. Ghana has so far received $1.2 billion in two tranches from the IMF, with a third $360 million payout pending the completion of the ongoing third review.
With over 70% of its $58 billion public debt classified as high risk by the World Bank, Ghana’s ability to stick to IMF-mandated reforms could determine its access to additional multilateral support and investor confidence.
As talks shift to the 2025 budget, all eyes remain on whether Accra can balance austerity with social stability in a year already marked by election-driven spending concerns.
