The International Monetary Fund (IMF) has approved the second review of Ghana’s $3 billion economic support programme. This decision allows Ghana to immediately receive an additional $360 million, bringing the total funds disbursed to about $1.6 billion since May 2023.
A statement announcing the outcome of the Executive Board meeting noted that Ghana’s economic reforms, supported by the IMF, are showing positive results.
It says after facing significant economic challenges in 2022, the Fund has helped stabilise the economy, reduce inflation, and improve government finances.
“These efforts are paying off, with growth proving more resilient than initially expected, inflation declining at a faster pace, and the fiscal and external positions improving. The medium-term outlook remains favourable but subject to downside risks—including those related to the upcoming general elections”, the statement noted.
Join our WhatsApp Channel for more news
The IMF praised Ghana for meeting its economic targets, including key reforms. It also noted that the government has also made progress in restructuring its debt, which was a crucial step for the IMF’s review.
IMF Deputy Managing Director Kenji Okamura emphasised the importance of Ghana’s commitment to economic reforms. He noted that the country’s efforts are starting to pay off, but sustained focus on fiscal management and policy adjustments is crucial, especially during the upcoming elections.
“Ghana’s performance under its ECF-supported reform program has been generally strong. The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilization emerging.
Going forward, perseverance in macroeconomic policy adjustment and reforms is essential to fully restore macroeconomic stability and debt sustainability while fostering a sustainable increase in economic growth and poverty reduction”, Mr. Okamura said.
Looking ahead, Ghana aims to further improve its finances by increasing government revenue and controlling spending. This includes plans to achieve a budget surplus in the coming years while protecting vulnerable communities through social programmes.
The Accra Times earlier this week reported that Ghana was in good stead to secure the Board’s approval for the disbursement of the third tranche.
However, currency analysts say the IMF inflow alone can only slow down the rate of the cedi deprecation but will not be enough to sustain an appreciation of the value of the cedi.
