Ghana has inched closer to unlocking a further US$360 million from the International Monetary Fund (IMF) after reaching a staff-level agreement on the third review of its Extended Credit Facility (ECF) program. The deal, announced by the IMF team, led by Mission Chief Stéphane Roudet, follows a series of high-level meetings held in Accra between September 24 and October 4, 2024.
This development means Ghana could soon access SDR 269.1 million (about US$360 million), bringing the total disbursement since the approval of the three-year ECF program in May 2023 to an impressive SDR 1.441 billion (roughly US$1.92 billion). However, the staff-level agreement still requires approval from the IMF’s management and Executive Board before the funds are made available.
According to the IMF’s statement, Ghana’s performance under the Fund-supported program has been “generally satisfactory.” The country met all its quantitative targets as of the end of June 2024, with notable progress in several key structural reforms. However, delays in some areas still need to be addressed. Roudet and his team commended Ghana for its stronger-than-expected economic growth during the first half of 2024, driven by robust performances in mining, construction, and the ICT sectors.
Despite these gains, the IMF cautioned that the recent dry spell in the Northern regions is likely to negatively impact agricultural output, which could put pressure on food prices and slow growth in the second half of the year. Nevertheless, the IMF noted that the government’s swift policy response is expected to mitigate these risks, and the Bank of Ghana’s tight monetary stance is likely to continue reining in inflation.
On the fiscal front, Ghana is set to achieve a primary surplus of 0.5% of GDP for 2024 despite emerging spending pressures, including those stemming from the drought and ongoing difficulties in the energy sector. The IMF engaged the government on critical reforms to ensure the energy sector remains sustainable and transparent, while also bolstering revenue collection and managing expenditure in the lead-up to the December elections.
The IMF mission held talks with key government officials, including Finance Minister, Mohammed Amin Adam and Bank of Ghana Governor, Ernest Addison. The team also consulted with various stakeholders in the country to gain a broader perspective on the economy.