Ghana has secured a staff-level agreement with the International Monetary Fund (IMF) on the final review of its bailout programme, alongside a new reform-focused policy framework, as the country consolidates hard-won macroeconomic stability and pivots toward long-term growth and resilience.
The agreement covers the sixth and final review under the Extended Credit Facility (ECF), the 2026 Article IV Consultation, and a request for a 36 month non-financing Policy Coordination Instrument (PCI), following an IMF staff mission led by Mr. Ruben Atoyan from April 29 to May 15.
The IMF said Ghana’s ECF-supported programme has delivered “substantial stabilisation gains,” underpinned by strong reform efforts and progress in public debt restructuring.
Inflation has declined sharply, international reserves have improved and confidence in the cedi has strengthened.
Fiscal performance has exceeded expectations, with the primary surplus outperforming programme targets in 2025, while public debt has fallen significantly. Economic growth has also surprised on the upside, supported by broad-based activity and historically high gold export receipts.
Investor confidence is gradually returning, with the successful resumption of domestic Treasury bond issuance cited as a key sign of improving market sentiment. While most quantitative programme targets have been met, the IMF noted that structural reforms have proceeded with delays, underscoring the need for sustained reform.
With macroeconomic stability taking hold, the IMF is pivoting its engagement with Ghana from crisis response to longer-term reform support through the proposed PCI.
Unlike the ECF, the PCI will not provide financing but will anchor policy discipline and guide reforms over a three-year period. The programme is expected to prioritise growth-friendly fiscal consolidation, debt sustainability, stronger governance of state-owned enterprises (SOEs), and enhancements to monetary and exchange-rate policy frameworks.
It will also aim to reinforce financial sector stability while promoting economic diversification and inclusive growth.
Progress in restructuring domestic and external debt has been central to Ghana’s recovery. The IMF said bilateral agreements have been reached with about half of official creditors under the G20 Common Framework, with negotiations ongoing with the remaining creditors.
These developments have improved Ghana’s debt outlook and created limited fiscal space to address pressing development needs, including youth employment and social spending, while maintaining the legally mandated debt anchor of 45 percent of GDP by 2034.
The IMF indicated that lowering the primary surplus target to 0.5 percent of GDP from 2027 could remain consistent with debt sustainability, provided reforms in public financial management, fiscal risk oversight and SOE governance are strengthened.
Despite the progress, Ghana remains exposed to global and domestic risks. The IMF warned that ongoing geopolitical tensions, particularly in the Middle East, could affect the economy indirectly through higher energy, food and fertiliser prices.
Domestically, fiscal risks remain elevated, particularly from SOEs and quasi-fiscal activities. The PCI programme will therefore emphasise stronger safeguards, transparency and accountability to entrench policy credibility and rebuild buffers.
The IMF stressed the importance of maintaining a prudent and forward-looking monetary policy stance to anchor inflation expectations.
Concerns were raised about the Bank of Ghana’s balance sheet, particularly losses linked to the Domestic Gold Purchase Programme. The Fund called for improved transparency, limits on quasi-fiscal operations and proper budget recognition of associated costs to strengthen accountability and policy effectiveness.
The financial sector has shown signs of stabilisation, supported by bank recapitalisation efforts and the gradual unwinding of regulatory relief measures introduced during the domestic debt exchange.
However, vulnerabilities remain, including elevated non-performing loans and weaknesses in some institutions. The IMF urged continued vigilance, including effective restructuring of state-owned banks and specialised deposit-taking institutions.
The IMF highlighted the need for continued reform in key sectors to protect public finances. In the energy sector, priority actions include reducing losses at the Electricity Company of Ghana, improving bill collection and advancing private sector participation.
In the cocoa sector, while recent interventions have provided some relief, deeper reforms are needed to improve efficiency, streamline costs and ensure the long-term financial sustainability of COCOBOD.
Strengthening governance remains a critical pillar of the reform agenda. The IMF called for closing gaps in the anti-corruption framework, including the meaningful public disclosure of asset declarations, with appropriate safeguards.
Source: businesspostonline
