International Monetary Fund (IMF) delegation is set to commence discussions with the government today, February 10, 2025, focusing on the state of the economy.

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The engagements will revolve around the economy and the 2025 Budget, which, according to sources, is expected to be presented in Parliament by March 2025.

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During the five-day visit, the team will also evaluate the government's progress in negotiations with External Commercial Creditors and efforts to address debts within the Energy Sector.

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Additionally, the IMF will seek clarity on the government’s approach to managing the country’s energy challenges and explore discussions on the possible privatization of sections of the Electricity Company of Ghana (ECG).

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Fourth Review and IMF Visit

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JOYBUSINESS sources indicate that this engagement is not part of a formal Review Mission but will primarily focus on the economy and the 2025 Budget.

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The IMF is scheduled to conduct Ghana’s fourth programme review later in the year.

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This assessment will be based on fiscal data covering the economy up to December 2024.

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2025 Budget and Economic Discussions

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As part of its evaluation, the IMF will examine whether the 2025 Budget aligns with its programme for Ghana, particularly regarding revenue generation.

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Ghana’s IMF-supported programme is centered on boosting revenue collection and reducing national debt to sustainable levels.

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Reports indicate that the IMF team will seek clarity on how the government plans to address revenue shortfalls should Finance Minister Dr. Ato Forson proceed with plans to eliminate taxes such as the Betting Tax, Covid-19 Levy, and E-Levy.

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Projections suggest that Ghana could lose approximately 10 billion cedis annually if these tax cuts are implemented.

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The delegation will also request further details on strategies for economic recovery and their broader impact on the programme.

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Programme Extension and Additional IMF Support

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Dr. Forson has recently revealed intentions to push for an extension of the IMF programme to secure additional financial support for economic stabilization.

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The visit presents an opportunity for both the government and the IMF to conclude discussions on this proposal.

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While the IMF remains open to programme adjustments, it insists that any modifications must align with the overall objectives of the agreement.

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Ghana’s IMF Programme

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Since Ghana entered into an agreement with the IMF in May 2023, the country has received approximately US$1.9 billion in financial assistance.

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Following the completion of the third review, the IMF described Ghana’s programme performance as generally satisfactory, highlighting significant progress in debt restructuring.

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“Economic growth in the first half of 2024 exceeded expectations, inflation has continued to decline, and the fiscal and external positions have showed marked improvements”, it added.

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