A delegation from the International Monetary Fund (IMF) is expected to arrive in Accra on February 8, for high-level talks with government officials regarding the economy and the upcoming 2025 budget.

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The five-day engagement will focus on Ghana’s economic outlook, ongoing debt restructuring negotiations with external creditors, and the country's energy sector liabilities, according to reports from JoyNews. Discussions will also touch on government’s proposed strategies for addressing energy challenges, including the potential privatization of aspects of the Electricity Company of Ghana’s (ECG) operations.

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According to sources within the Finance Ministry, this visit is not part of the IMF’s official review process but rather a working engagement to assess Ghana’s economic trajectory and fiscal policies. The formal Fourth Review of Ghana’s IMF-backed programme is expected to take place later in the year, based on fiscal data up to December 2024.

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Should Ghana successfully pass this upcoming assessment, the IMF is likely to release another tranche of financial support to the Bank of Ghana by June 2025.

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The IMF team will scrutinize the 2025 Budget to ensure it aligns with Ghana’s ongoing programme with the Fund, particularly regarding revenue mobilization and debt reduction.

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One key area of concern will be the government’s plans to bridge potential revenue gaps should Finance Minister Dr. Ato Forson proceed with proposed tax cuts, including the removal of the Betting Tax, Covid-19 Levy, and E-Levy.

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Sources indicate that eliminating these taxes could cost Ghana approximately GH₵10 billion annually, raising questions about alternative revenue streams to maintain fiscal stability.

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Dr. Forson has recently hinted at seeking an extension of Ghana’s IMF programme to secure additional funding aimed at stabilizing the economy. The upcoming discussions will provide an opportunity for both parties to explore this possibility and finalize related negotiations.

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While the IMF remains open to adjustments in Ghana’s programme, it has emphasized that any modifications must align with the broader economic stabilization goals.

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Since Ghana entered the IMF programme in May 2023, the country has received approximately $1.9 billion in financial support.

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Following the completion of the Third Review, the IMF commended Ghana’s progress, noting that, “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.”

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With these factors in mind, the upcoming discussions will be critical in shaping the next phase of Ghana’s economic recovery and policy direction under the IMF-supported programme.

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