Ghana’s IMF Programme Undermined by Policy Slippages and Reform Delays
Ghana’s $3 billion programme under the International Monetary Fund’s (IMF) 36-month Extended Credit Facility (ECF) has been flagged for significant policy slippages and delays in implementing key reforms, according to the Fund’s latest review.
The IMF described the country’s programme performance as having “deteriorated markedly” by the end of 2024. This was disclosed in the Fund’s update following the completion of Ghana’s Fourth Review, which also approved the disbursement of an additional $367 million—bringing total disbursements under the programme to about $2.3 billion.
While Ghana recorded stronger-than-expected economic growth and a notable improvement in its external position in 2023, the IMF noted that programme implementation faltered in the run-up to the election year.
“This reflected pre-election fiscal slippages, inflation remaining above programme targets—though recent data point to renewed rapid disinflation—and delays in key reforms,” the IMF stated.
Following the Executive Board’s assessment, IMF Deputy Managing Director Bo Li confirmed that the programme had fallen significantly off track by the end of 2024.
“Faced with large policy slippages and reform delays at end-2024, the new administration has taken bold corrective actions to keep the programme on track,” he said.
According to the IMF, these measures—combined with ongoing structural reforms and a stronger external position—are expected to help Ghana advance its goals of macroeconomic stabilisation, resilience building, and inclusive growth.
Meanwhile, Ghana’s broader macroeconomic outlook shows encouraging signs of recovery. The cedi has appreciated by over 30% against the US dollar, while inflation has dropped sharply to 13.7% as of the end of June. Gross International Reserves have also improved, now covering more than four months of imports.
A key signal of renewed investor confidence is the upgraded outlook on Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR). Government sources say discussions are ongoing to return to the international capital market, following the successful reopening of domestic bond issuances.
Credit: Isaac Kofi Agyei, JoyNews Research
