The International Monetary Fund (IMF) has acknowledged Ghana’s stronger-than-anticipated economic growth in 2024, largely driven by robust performance in the mining and construction sectors. However, despite these positive developments, the Fund has raised concerns over fiscal slippages and delays in critical reforms, particularly in the lead-up to Ghana’s 2024 general elections.

According to a statement released by the IMF following a mission to Accra, the external sector also showed significant improvement during 2024, supported by solid export performance especially in gold, and to a lesser extent, oil as well as an increase in remittances. These factors contributed to a substantial accumulation of international reserves, surpassing targets set under Ghana’s Extended Credit Facility (ECF)-supported program.

An IMF staff team, led by Mr. Stéphane Roudet, Mission Chief for Ghana, conducted discussions with Ghanaian authorities from April 2 to April 15, 2025, as part of the fourth review of Ghana’s three-year arrangement under the ECF. This program, initially approved by the IMF Executive Board on May 17, 2023, allocated a total of SDR 2.242 billion (approximately US$3 billion) to support Ghana’s economic stabilization and reform efforts amid ongoing fiscal and debt challenges.

At the conclusion of the mission, Mr. Roudet confirmed that IMF staff and the Government of Ghana had reached a staff-level agreement regarding the fourth review of the economic program. This agreement, however, remains subject to approval by the IMF Executive Board. Once approved, Ghana would gain access to an additional SDR 267.5 million (about US$370 million), bringing total disbursements under the program to SDR 1,708 million (approximately US$2.355 billion) since its inception.

While commending Ghana for exceeding growth expectations and strengthening its external sector, the IMF expressed concern over a marked deterioration in overall program performance by the end of 2024. Preliminary fiscal data revealed significant slippages, notably due to a large accumulation of unpaid obligations in the months preceding the elections. Inflation also surpassed program targets, and key reforms in fiscal management, the financial sector, and the energy sector experienced delays.

In response to these setbacks, Ghana’s new authorities have initiated corrective measures aimed at restoring fiscal discipline and ensuring that the broader objectives of the ECF-supported program remain achievable. Among these measures is a comprehensive audit of outstanding payables to assess the extent of fiscal slippages. Preliminary findings indicate that the primary balance recorded a deficit of approximately 3.25% of GDP, diverging sharply from the targeted surplus of 0.5% of GDP.

To address this fiscal gap, the government has enacted a 2025 budget that targets a primary surplus of 1.5% of GDP. Additionally, several public financial management (PFM) reforms have been introduced, including enhancements to the fiscal responsibility framework and stricter rules governing expenditure commitments. Discussions between the IMF and Ghanaian authorities also focused on the need for further structural reforms to address persistent weaknesses in public financial management and procurement systems.

The IMF emphasized the importance of protecting vulnerable populations during this adjustment period. Measures to strengthen social protection programs were discussed, ensuring that efforts to rein in inflation and consolidate fiscal accounts do not disproportionately impact the most disadvantaged groups.

On the monetary policy front, the Bank of Ghana has responded to inflationary pressures by raising its policy rate and reviewing liquidity management operations. The IMF expects that the combined effect of tighter monetary policy and fiscal consolidation will help bring inflation under control in the coming months.

Furthermore, the IMF mission engaged with Ghanaian authorities on a broad structural reform agenda aimed at improving governance, enhancing transparency, and strengthening the management of State-Owned Enterprises (SOEs), particularly in key sectors such as gold, cocoa, and energy. The resumption of quarterly electricity tariff adjustments, alongside structural reforms, is anticipated to reduce deficits within the energy sector and prevent the accumulation of new arrears.

The IMF also highlighted progress in maintaining financial stability, noting that recapitalization efforts are ongoing and that authorities remain committed to bolstering the resilience of public banks.

A critical component of Ghana’s economic recovery strategy remains the comprehensive restructuring of public debt to restore sustainability. The Memorandum of Understanding (MoU) with Ghana’s Official Creditors Committee (OCC), under the G20 Common Framework, has been signed, marking a significant milestone. Efforts are now focused on finalizing bilateral agreements and securing comparable terms with commercial creditors.

During the mission, IMF staff held extensive consultations with key stakeholders, including Finance Minister Dr. Mohammed Amin Adam, Bank of Ghana Governor Dr. Maxwell Opoku-Afari, and representatives from various government agencies. The discussions were described as open and constructive, reflecting a shared commitment to ensuring Ghana’s economic stability and long-term growth.

In its concluding statement, the IMF team expressed sincere gratitude to the Ghanaian authorities and other counterparts for their cooperation and dedication to advancing the reform agenda. The Fund reaffirmed its continued support for Ghana as the country navigates complex economic challenges while striving to achieve sustainable growth, macroeconomic stability, and improved social outcomes.

As Ghana awaits the IMF Executive Board’s approval of the staff-level agreement, the focus will remain on implementing the agreed reforms with discipline and urgency, ensuring that the nation stays on course toward economic recovery and resilience.