Ghana secures $370 million IMF tranche to support economic recovery
Ghana has cleared another major step in its $3 billion support program with the International Monetary Fund (IMF) after reaching a staff-level agreement for the fourth review. Once approved by the IMF Executive Board, this milestone will release a new disbursement of $370 million, pushing total receipts under the deal to around $2.36 billion since it began in May 2023.
The country’s economy showed signs of recovery throughout 2024, with growth surpassing expectations. Key sectors such as mining and construction led this improvement, while strong gold exports and a steady inflow of remittances helped to stabilize the country’s external position. International reserves also improved, beating some program benchmarks.
Despite the progress, challenges remain. Fiscal discipline weakened during the election season, leading to a buildup of unpaid government bills. Inflation exceeded the program’s targets, and key structural reforms stalled, particularly in the energy, finance, and public sectors.
Since taking office in early 2025, the current administration has taken steps to bring the program back on track. These include auditing outstanding liabilities, introducing tighter spending controls, and adopting a new budget for the year that targets a 1.5% primary surplus, excluding interest payments.
Authorities are also making efforts to strengthen public financial management and improve how public funds are used. A particular focus is being placed on procurement processes, governance systems, and social safety nets for vulnerable groups.
The central bank has taken measures to support inflation control by raising interest rates and limiting liquidity in the financial system. This monetary tightening is being carried out alongside fiscal reforms to help restore market confidence and stabilize the economy.
In the area of public enterprise reform, efforts are underway to improve the performance of state-owned companies. The energy, cocoa, and gold sectors are receiving special attention, with a renewed focus on cutting down arrears and managing costs more effectively. One key step involves restarting quarterly electricity tariff adjustments to prevent further debt accumulation in the power sector.
To support the financial sector, plans are in place to recapitalize banks and improve the operations of public lenders.
Ghana has also made headway in managing its debt. A Memorandum of Understanding has been signed with all official creditors under the G20 Common Framework. The next phase will involve finalizing bilateral deals and continuing negotiations with commercial lenders.
By: Linda Akite
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