The International Monetary Fund (IMF) Executive Board on Monday announced the successful completion of the fourth review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement, paving the way for an immediate disbursement of approximately US367 million (SDR 267.5 million).
However, this latest tranche brings Ghana’s total disbursements under the arrangement to approximately US2.3 billion.
The completion of this review underscores Ghana’s commitment to its economic stabilization and reform agenda, despite facing certain challenges.
IMF Executive directors highlighted that Ghana achieved higher-than-expected growth and significant improvement in external position last year. However, program performance deteriorated markedly in late 2024, reflecting pre-election fiscal slippages.
Furthermore, the Executive Board noted that “The authorities are strongly committed to restoring fiscal discipline and addressing the structural weaknesses that led to the slippages. They have passed a 2025 budget consistent with the program’s objectives and enacted an enhanced fiscal responsibility framework.” This statement highlights the government’s proactive measures to ensure the fiscal program remains on track, including aiming for a 1½ percent of GDP fiscal primary surplus in 2025.
The multi-year ECF arrangement, originally approved in May 2023 for US$3 billion, aims to restore macroeconomic stability and debt sustainability in Ghana, while fostering higher and more inclusive growth. The continued support from the IMF is crucial for Ghana as it navigates its economic recovery, rebuilds resilience, and implements structural reforms. Looking ahead, the integrity of fiscal policy adjustment will be crucial, predicated on sustained efforts to strengthen revenue administration, bolster public financial management, and improve the management of State-Owned Enterprises (SOEs), particularly addressing challenges in the energy sector. These ongoing reform efforts, combined with an improved external position, are expected to bolster Ghana’s economic outlook.
