Ghana has reached a staff-level agreement with the International Monetary Fund (IMF), paving the way for a $370 million disbursement under the country’s $3 billion bailout program. The agreement, announced by Finance Minister Dr. Cassiel Ato Forson on April 15, marks a significant milestone in Ghana’s efforts to stabilize its economy and accelerate reform.
The IMF noted that Ghana’s economic recovery was stronger than expected, driven by robust activity in the mining and construction sectors, but program performance “deteriorated markedly” toward the end of 2024 due to election-related fiscal slippages and delayed reforms. Despite these challenges, the government has implemented bold measures to restore discipline, including a stronger budget framework, enhanced public financial management reforms, and tighter monetary policy.
The $370 million disbursement, pending approval by the IMF’s Executive Board, will bring Ghana’s total receipts under the program to approximately $2.3 billion. The government has committed to fully implementing program commitments, including reforms to enhance energy sector sustainability and transparency.
Key measures include ¹:
- Independent Audit: An independent audit of a large stockpile of arrears accumulated in 2024, led by the Auditor-General and two international firms
- Legislative Reforms: Parliament has amended Ghana’s Public Financial Management Act to include a debt ceiling of 45% of GDP by 2035 and mandate an annual primary surplus of at least 1.5%
- Fiscal Council: A new independent fiscal council will oversee compliance, while procurement rules now require Finance Ministry certification for all central government contracts
The IMF welcomed these measures, expressing confidence in the government’s commitment to restoring macroeconomic stability and debt sustainability.
Sankofaonline
