The International Monetary Fund (IMF) has reached a Staff-Level Agreement with the government of Ghana on the third review of the Extended Credit Facility (ECF) arrangement. Led by IMF Mission Chief for Ghana, Stéphane Roudet, discussions took place in Accra from September 24 to October 4, 2024, focusing on Ghana’s reform progress and policy priorities.
In a statement, Mr. Roudet confirmed that the IMF staff and Ghanaian authorities successfully concluded a staff-level agreement on the third review of the country’s economic program under the ECF arrangement. This agreement now awaits approval by the IMF’s Management and Executive Board.
Once the Executive Board completes its review, Ghana would gain access to Special Drawing Rights (SDR) 269.1 million, approximately US$360 million. This would bring the total financial support disbursed to Ghana since May 2023 to SDR 1,441 million (about US$1.92 billion).
The IMF noted that Ghana’s performance under the program has been broadly satisfactory. All key quantitative targets for June 2024 were met, and progress on structural reforms is ongoing, despite a few delays. The statement emphasized that the policy and reform efforts continue to yield promising outcomes.
Economic growth in the first half of 2024 was stronger than expected, fueled by sectors such as mining, construction, and information and communications. Growth sources also expanded in the second quarter as inflation saw a continued decline. However, a recent drought in the Northern regions could negatively affect agricultural output and place upward pressure on food prices. The government’s policy measures are expected to mitigate these risks, with the Bank of Ghana maintaining a tight monetary policy to support further reductions in inflation.
Fiscal performance in 2024 has been robust, with Ghana on track to achieve a primary surplus of ½ per cent of GDP, despite budgetary pressures from the drought and challenges in the energy sector. Discussions also focused on energy sector reforms to enhance sustainability and transparency, as well as policies to strengthen revenue collection and expenditure control ahead of the December elections. Efforts to bolster social protection programs for the most vulnerable were also reviewed.
The IMF acknowledged significant progress in Ghana’s public debt restructuring efforts. Following the successful domestic debt restructuring in 2023 and an agreement with the Official Creditors Committee under the G20 Common Framework in June, the government recently completed a consent solicitation to restructure its Eurobonds, with the exchange set to occur soon.
Ghana remains committed to engaging with other external commercial creditors to secure a debt treatment aligned with program parameters and the principles of comparability of treatment.
Regarding the external sector, 2024 saw improvements driven by strong exports, especially in gold and oil, as well as higher remittances. International reserves have also accumulated beyond program targets. Additionally, financial stability has been maintained, with banks showing progress in recapitalization and profitability.
IMF staff held meetings with Finance Minister Mohammed Amin Adam, Bank of Ghana Governor Ernest Addison, and other government representatives. The IMF team expressed appreciation for the Ghanaian authorities’ continued openness and cooperation throughout the review process.
