The International Monetary Fund (IMF) has reached a staff-level agreement with Ghana on the fourth review of its $3 billion Extended Credit Facility (ECF) program. If approved by the IMF Executive Board, the agreement will unlock a $370 million disbursement, bringing total disbursements under the program to approximately $1.6 billion. Ghana, one of Africa’s leading exporters of gold, cocoa, and oil, is navigating a recovery from its most severe economic crisis in a generation. Soaring inflation, debt distress, and a sharp depreciation of the cedi prompted the country to seek IMF support in 2022. A comprehensive debt restructuring followed, involving both domestic and external creditors.
According to the IMF, Ghana’s performance under the program weakened in late 2024 due to delays in key fiscal and structural reforms, missed targets, and a primary budget deficit of 3.25% of GDP—well short of the 0.5% surplus target. Inflation remained high, driven by food prices and currency pressures. In response, the government introduced a 2025 budget focused on fiscal consolidation, aiming for a primary surplus of 1.5% of GDP. The Bank of Ghana has also tightened monetary policy and is reassessing its liquidity operations to help bring inflation under control.
While President John Mahama previously expressed intentions to renegotiate the IMF agreement during his campaign, his administration has since opted to maintain the current framework, signaling continuity in economic policy. The IMF commended Ghana’s recent corrective measures and reiterated its support for the country’s recovery, while urging continued progress on revenue mobilization, debt management, and anti-corruption reforms.
