The International Monetary Fund (IMF) says Ghana’s economic recovery programme has delivered “substantial stabilisation gains,” citing falling inflation, stronger fiscal performance, improved foreign reserves and renewed confidence in the cedi.

An IMF staff team led by Ruben Atoyan visited Accra from April 29 to May 15 for discussions on Ghana’s 2026 Article IV consultation, the sixth and final review of the Extended Credit Facility (ECF), and the government’s request for a new non-financing Policy Coordination Instrument (PCI).

At the end of the mission, the IMF said Ghana’s growth exceeded expectations in 2025, supported by broad-based economic activity and historically high gold export receipts.

“Fiscal performance has strengthened markedly, with the primary surplus overperforming the program target in 2025, while the public debt ratio declined sharply,” the IMF said.

The Fund also noted that most quantitative targets under the programme were met, although some structural reforms experienced delays.

Despite the positive assessment, the IMF cautioned that the global environment remains uncertain, warning that the war in the Middle East could still affect Ghana through rising energy, food and fertiliser prices.

“The volatile external environment underscores the importance of preserving prudent policies and strengthening resilience,” the statement said.

The IMF disclosed that Ghana has made significant progress in domestic and external debt restructuring, thereby improving the country’s debt outlook.

According to the Fund, bilateral debt-relief agreements have been reached with about half of Ghana’s official creditors under the G20 Common Framework, while negotiations with the remaining creditors are ongoing.

It also pointed to the successful return of domestic treasury bond issuance earlier this year as a sign of improving investor confidence.

The IMF announced that it has reached a staff-level agreement with Ghanaian authorities on a new 36-month Policy Coordination Instrument aimed at sustaining reforms beyond the current bailout programme.

The proposed PCI will focus on maintaining growth-friendly fiscal adjustment, safeguarding debt sustainability, strengthening transparency and governance, improving monetary and exchange-rate policy, reinforcing financial sector stability, and promoting economic diversification.

The Fund said recent improvements in Ghana’s debt trajectory have created “carefully calibrated fiscal space” that could support development spending, youth employment and social protection without undermining debt sustainability targets.

Under the proposed arrangement, the IMF indicated that reducing the primary surplus target to 0.5 per cent of GDP from 2027 would still be consistent with maintaining debt sustainability, provided public financial management reforms continue.

The IMF also raised concerns about the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), warning that losses linked to the initiative highlight the risks of quasi-fiscal activities.

“The losses associated with the Domestic Gold Purchase Programme underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the statement noted.

The Fund urged authorities to protect the Bank of Ghana’s balance sheet against DGPP-related risks and to ensure that future costs are fully reflected in the national budget to improve accountability and oversight.

In the banking sector, the IMF welcomed progress in recapitalising banks and rolling back temporary regulatory relief measures introduced during the debt exchange programme.

However, it stressed that vulnerabilities remain, particularly among state-owned banks and specialised deposit-taking institutions, while high non-performing loans continue to pose risks to sustainable credit growth.

The IMF also called for deeper reforms in the energy and cocoa sectors.

In the energy sector, it said priority should be given to reducing distribution and collection losses at the Electricity Company of Ghana, clearing legacy arrears and reducing generation costs.

It further urged the government to finalise private sector participation in electricity distribution.

On cocoa, the IMF said recent interventions had provided some relief but stressed that more reforms were needed to secure the long-term financial sustainability of COCOBOD.

The Fund recommended more frequent farmgate price adjustments and measures to streamline costs and improve efficiency.

The IMF also pressed for stronger anti-corruption measures, including meaningful public disclosure of standardised asset declarations.

It concluded by warning Ghana against repeating “cycles of fiscal imbalances, rising debt, weak buffers, and reform reversals,” saying sustained reforms and prudent policies would be critical to protecting the gains achieved under the programme.