In a significant milestone for Ghana’s economic recovery efforts, the International Monetary Fund (IMF) executive board has approved the third review of Ghana’s reform program. This approval clears the way for the immediate disbursement of $360 million, bringing the total funds released under the program to $1.9 billion since its inception in May 2023.
Progress on Economic Reforms
According to the IMF, Ghana’s performance under the program has been satisfactory. The country met all quantitative performance criteria and indicative targets for the third review. Despite some delays, significant progress has been achieved in key structural reforms. These efforts have delivered encouraging results, with the economy showing clear signs of stabilization.
The IMF commended Ghana’s fiscal performance, which remains on track despite challenges such as a recent dry spell and energy sector difficulties. The Bank of Ghana has also been lauded for its strong monetary policy stance, which has helped curb inflationary pressures.
Staying the Course
The IMF emphasized the importance of continuing macroeconomic policy adjustments and reforms to fully restore economic stability and debt sustainability. These measures are critical for fostering long-term economic growth and reducing poverty.
Background
Once one of Africa’s fastest-growing economies, Ghana faced a severe economic crisis in 2022, characterized by high inflation, exchange rate fluctuations, and rising costs of living. To address these challenges, the government secured a $3 billion loan from the IMF in May 2023. The funding is part of a comprehensive reform program aimed at stabilizing the economy and steering it toward sustainable growth.
In November 2024, the Bank of Ghana maintained its key lending rate at 27% to manage inflation risks. This decision reflects the government’s commitment to addressing macroeconomic challenges and creating a stable economic environment.
Looking Ahead
With the IMF’s continued support and the government’s dedication to reforms, Ghana is poised to strengthen its economy, achieve debt sustainability, and improve the quality of life for its citizens.
