Audio By Carbonatix
Ghana has reached a staff-level agreement with the International Monetary Fund on the Fifth Review of the Extended Credit Facility.
According to a statement, this staff-level agreement is subject to IMF Management approval and Executive Board consideration. Once approved, Ghana will gain access to US$385 million.
The statement stated that macroeconomic stabilisation is taking root, whilst growth in 2025 half-year was stronger than anticipated, underpinned by strong services activity and agricultural output.
It emphasised that the external sector has improved noticeably on robust exports—particularly gold and cocoa. International reserves accumulation continues to exceed the ECF-supported programme targets, while the cedi appreciated markedly in the first half of the year.
“The positive momentum is expected to continue into 2026, with growth projected at 4.8%. Inflation is forecasted to remain within the Bank of Ghana’s (BoG) target band of 8±2%, allowing for gradual monetary policy normalization. A solid current account surplus will continue to aid reserves accumulation, though external risks remain significant largely on account of lingering uncertainty of commodity prices for Ghana’s key exports”, it pointed out.
The statement continued that the authorities have made notable strides in addressing long-standing challenges in the energy sector, adding, “The government has renegotiated legacy arrears and power purchasing agreements with most independent power producers (IPPs). Tariff adjustments are now conducted quarterly, helping better reflect costs. Payments through the Cash Waterfall Mechanism have also increased significantly”,
On the fiscal front, the report said primary balance for the first eight months of 2025 posted a surplus of 1.1% of Gross Domestic Product (GDP), on track to achieve the 1.5% of GDP target by year-end.
“The authorities are committed to adopting a 2026 budget targeting a 1.5 percent of GDP primary surplus on a commitment basis, in line with the recently adopted Fiscal Responsibility Framework”.
Ghana signed onto an IMF programme in May 2023 to help restructure its ailing economy. The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.242 billion (about US$3.2 billion) on May 17, 2023.
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