Ghana and the International Monetary Fund (IMF) have concluded discussions on the country’s economic reform agenda under the Extended Credit Facility (ECF), reaching a staff-level agreement on the fourth review of the three-year US$3 billion program.

“IMF staff and the Ghanaian authorities have reached a staff-level agreement on the fourth review of Ghana’s economic program under the Extended Credit Facility arrangement,” said Stéphane Roudet, the IMF Mission Chief for Ghana.

He added that the agreement remains subject to approval by the IMF Executive Board, after which Ghana will receive SDR 267.5 million, approximately US$370 million. This would bring total disbursements under the arrangement to SDR 1.708 billion, or about US$2.36 billion since May 2023.

The two-week mission, which took place in Accra from April 2 to April 15, reviewed Ghana’s progress on key reforms. The IMF noted stronger-than-expected growth in 2024, crediting increased mining and construction activity. The country also saw improvements in its external sector, buoyed by robust gold exports and higher remittances, which led to stronger-than-targeted international reserve accumulation.

Despite these gains, the Fund observed setbacks in fiscal discipline toward the end of 2024, citing a surge in unpaid obligations ahead of the general elections and delays in implementing reforms across various sectors. Inflation also overshot program targets.

In response, Ghana’s new administration has taken what the IMF called “bold measures” to correct policy slippages and maintain the program’s direction. This includes an audit of accumulated payables and the passage of a 2025 budget that aims for a primary surplus of 1.5% of GDP. The government has also initiated reforms to tighten spending controls and improve public financial management.

Discussions also touched on fortifying social protection schemes and enhancing transparency in state-owned enterprises, particularly in the gold, cocoa, and energy sectors. The IMF welcomed Ghana’s commitment to reducing energy sector arrears and its progress on bank recapitalization.

Roudet further acknowledged Ghana’s efforts to resolve its public debt crisis, revealing that “the Memorandum of Understanding with Ghana’s Official Creditors Committee under the G20 Common Framework has been signed by all parties,” with the next steps focused on finalizing bilateral agreements and continuing talks with commercial creditors.

The mission held meetings with key government officials, including Finance Minister Dr. Cassiel Ato Forson and Bank of Ghana Governor Dr. Maxwell Opoku-Afari Asiama, and commended authorities for their collaborative approach throughout the review.