The International Monetary Fund (IMF) has reached a staff-level agreement with the government of Ghana for the fourth review of the country’s Extended Credit Facility (ECF) programme, paving the way for a US$370 million disbursement once the IMF Executive Board grants final approval.
The agreement follows a two-week mission in Accra by an IMF team led by Mission Chief Stéphane Roudet, and comes amidst signs of economic resilience, despite policy slippages in the lead-up to the 2024 general elections.
“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,” Mr Roudet said in a statement released on April 15. “Upon completion of the Executive Board review, Ghana would have access to SDR 267.5 million (about US$370 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to about US$2.355 billion.”
According to the IMF, Ghana recorded stronger-than-anticipated growth in 2024, driven largely by robust performance in the mining and construction sectors. External conditions also improved significantly, with strong gold exports, increased remittances, and a better-than-expected build-up of foreign reserves.
However, these gains were tempered by a “marked deterioration” in overall programme performance by the end of 2024. The Fund cited election-year fiscal slippages, inflationary pressures, and delays in key reforms across the fiscal, financial, and energy sectors.
“Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables. Inflation exceeded programme targets. Several reforms and policy actions were delayed,” Mr Roudet noted.
The Fund acknowledged that Ghana’s new leadership has since taken “bold measures” to address the
Credit: GRAPHIC ONLINE