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Ghana’s $3 billion programme under the International Monetary Fund’s 36-months Extended Credit Facility (ECF) has been flagged for significant policy slippages and delays in reform implementation, 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 revealed in the Fund’s update following the completion of Ghana’s Fourth Review, which also approved the disbursement of $367 million, bringing the total amount disbursed under the programme to approximately $2.3 billion.
The Fund acknowledged that while Ghana recorded stronger-than-expected economic growth and saw a significant improvement in its external position in 2023, programme implementation suffered setbacks heading into the election year.
“This reflected pre-election fiscal slippages; inflation above program targets—though recent data point to renewed rapid disinflation; and reforms delays. ,” the IMF stated.
Following the Executive Board's assessment, Deputy Managing Director Bo Li noted that the programme had deviated substantially from its targets by the close of 2024.
“Faced with large policy slippages and reform delays at end-2024, the new administration has taken bold corrective actions to maintain the program on track,” he said.
According to the IMF, these corrective actions, when combined with continued structural reforms and an improved external sector, are expected to help Ghana achieve its broader goals of economic stabilization, resilience building, and inclusive growth.
Meanwhile, Ghana’s macroeconomic outlook has shown signs of recovery. The cedi has appreciated by more than 30% against the US dollar, and inflation has declined sharply to 13.7% as of the end of June. The country’s Gross International Reserves have also surged, now covering over four months of imports.
One of the most notable improvements is the upgraded outlook on Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR), a signal of rising investor confidence. Government sources say discussions are ongoing to return to the International Capital Market, following the successful reopening of domestic bond issuances.
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