The International Monetary Fund (IMF) and the Government of Ghana have reached a staff-level agreement on the fourth review of Ghana’s three-year Extended Credit Facility (ECF)-supported program.G

The agreement, once approved by the IMF Executive Board, will grant Ghana access to approximately US$370 million in financial support.

The announcement follows a mission led by Mr. Stéphane Roudet, IMF Mission Chief for Ghana, which took place in Accra from April 2 to April 15, 2025. The IMF is providing support under a 36-month ECF arrangement, initially approved in May 2023 for a total amount of SDR 2.242 billion (approximately US$3 billion).

At the conclusion of the mission, Mr. Roudet issued a statement highlighting both the recent achievements and ongoing challenges within Ghana’s economic landscape.

“IMF staff and the Ghanaian authorities have reached a staff-level agreement on the fourth review of Ghana’s economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to Executive Board consideration. Upon completion of the Executive Board review, Ghana would have access to SDR 267.5 million (about US$370 million), bringing the total IMF financial support disbursed under the arrangement, since May 2023, to SDR 1,708 million (about US$2,355 million).”

Mr. Roudet acknowledged that Ghana’s economy grew more than anticipated in 2024, driven largely by robust performance in the mining and construction sectors. He also noted a significant improvement in the country’s external position, thanks to strong export performance—particularly in gold—and increased remittances.

“Growth in 2024 was higher than expected, underpinned by strong mining and construction activity. The external sector has seen a considerable improvement, driven by solid exports—particularly gold and to a lesser extent oil—and higher remittances. As a result, international reserves accumulation has far exceeded the ECF-supported program targets.”

Despite these positive developments, the IMF observed a sharp decline in program performance toward the end of 2024. Fiscal slippages ahead of the general elections led to a substantial accumulation of payables, while inflation overshot program targets and several key reforms were delayed.

“Notwithstanding these achievements, overall performance under the IMF-supported program deteriorated markedly at end-2024. Preliminary fiscal data point to slippages in the run-up to the 2024 general elections on account of a large accumulation of payables. Inflation exceeded program targets. Several reforms and policy actions were delayed across the fiscal, financial, and energy sectors.”

To address these issues, Ghana’s new administration has undertaken a series of bold measures, including the implementation of a more disciplined 2025 budget and public financial management reforms aimed at restoring program momentum.

“Against this backdrop, the new authorities have taken bold measures to address policy slippages and ensure the program objectives remain within reach. On the fiscal front, the government has launched an audit of the payables to firm up the size and nature of the slippages. Based on preliminary estimates of new payables, the primary balance posted a deficit of some 3¼ percent of GDP (compared to a targeted surplus of ½ percent of GDP). To address these slippages, the authorities have enacted a 2025 budget that targets a 1½ percent of GDP primary surplus and adopted several public financial management reforms. The latter includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.”

The IMF mission also engaged in discussions with the Ghanaian authorities about addressing structural weaknesses in fiscal management, procurement, and social protection, particularly for the most vulnerable affected by inflation and fiscal adjustments.

“Discussions with the authorities centered on possible additional measures needed to address structural weaknesses in the public financial management and procurement systems as well as steps to ensure fiscal execution remains consistent with program objectives. Engagement with the authorities also focused on measures aimed at strengthening key social protection programs to cushion the most vulnerable from the impact of high inflation and ongoing policy adjustment.”

Monetary tightening by the Bank of Ghana, including a recent hike in the policy rate, is also expected to help bring inflation under control.

“The Bank of Ghana has recently increased its policy rate and is reviewing its liquidity management operations. The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.”

On the structural front, the authorities have recommitted to reforms that aim to improve transparency and governance, with specific attention to the management of State-Owned Enterprises (SOEs) in the gold, cocoa, and energy sectors.

“The mission also engaged the authorities on their wide-ranging structural reform program, with a focus on enhancing governance and transparency and strengthening State-Owned Enterprises management in the gold, cocoa, and energy sector. On the latter, the resumption of quarterly electricity tariff adjustments, combined with structural reforms, will help reduce the energy sector shortfall and stop the accumulation of new arrears. Financial stability is being maintained as recapitalization progresses and the authorities are committed to strengthening public banks.”

The IMF also welcomed Ghana’s continued progress on its comprehensive debt restructuring efforts, including recent developments under the G20 Common Framework.

“Ghana remains committed to completing its comprehensive public debt restructuring to restore sustainability. The Memorandum of Understanding (MoU) with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework has been signed by all parties, and the focus is now on finalizing the bilateral agreements to implement the MoU. The authorities are also pursuing good-faith efforts in reaching an agreement with other commercial creditors on a debt treatment that is in line with program parameters and the comparability of treatment principles.”

During the mission, IMF staff held meetings with Finance Minister Dr. Cassiel Ato Forson, Bank of Ghana Governor Dr. Johnson Asiama and other key government stakeholders.

The IMF expressed its appreciation for the continued cooperation and transparent engagement of the Ghanaian authorities.