IMF reaches staff-level agreement with Ghana for $385m disbursement

The International Monetary Fund (IMF) has reached a staff-level agreement with the Government of Ghana to conclude the fifth review of the country’s $3 billion Extended Credit Facility (ECF).

Once approved by the IMF Executive Board, Ghana will unlock US$385 million in fresh funding.

This development signals continued confidence in the country’s economic recovery trajectory.

The IMF mission, led by Ruben Atoyan, held discussions with Ghanaian authorities in Accra from September 29 to October 10, 2025, focusing on the nation’s policy and reform progress under the ECF arrangement approved in May 2023.

This new disbursement will bring total IMF support to about US$2.83 billion since the start of the program.

According to the IMF, macroeconomic stabilisation is taking hold, supported by stronger growth, falling inflation, and a rebounding cedi.

Growth in the first half of 2025 outperformed expectations, driven by robust services and agricultural output, while international reserves accumulation exceeded program targets.

The cedi also recorded significant appreciation, buoyed by strong export performance, particularly from gold and cocoa.

The Fund projects Ghana’s economic growth to reach 4.8% in 2026, with inflation stabilizing within the Bank of Ghana’s 8±2% target band, paving the way for gradual monetary easing.

Ghana’s current account surplus is expected to support continued reserve buildup, although risks from global commodity price volatility persist.

On the fiscal front, the government recorded a primary surplus of 1.1% of GDP in the first eight months of 2025, on track to meet its 1.5% year-end target.

The IMF commended authorities for maintaining fiscal discipline under the Fiscal Responsibility Framework, which aims to achieve sustainable budget surpluses through 2026.

The statement also highlighted notable progress in Ghana’s energy sector reforms, including the renegotiation of legacy debts and power purchase agreements with Independent Power Producers (IPPs).

The adoption of quarterly tariff adjustments and improved payment mechanisms have enhanced sector stability and transparency.

Debt restructuring efforts under the G20 Common Framework are advancing steadily. Ghana has finalised bilateral deals with five creditor nations and continues negotiations with remaining commercial creditors.

The IMF noted that Ghana’s debt sustainability outlook has improved, reflecting disciplined fiscal management and an upgraded macroeconomic performance.

Monetary policy has also shifted to support growth. With inflation trending downward, the Bank of Ghana has reduced its policy rate by 650 basis points to 21.5%, while maintaining a structured foreign exchange framework to smooth market volatility and strengthen reserves.

In the financial sector, authorities are executing a reform and recapitalisation plan for state-owned banks, expected to conclude by end-2025.

Measures to reduce non-performing loans and bolster crisis management frameworks are underway to safeguard financial stability.

The IMF also acknowledged progress on governance and transparency reforms, with a new Governance Diagnostic Assessment completed and set for publication.

The Fund urged continued oversight of state-owned enterprises, particularly in the gold, cocoa, and energy sectors, to enhance accountability and efficiency.

The IMF team expressed appreciation to Finance Minister Dr. Cassiel Ato Forson, Bank of Ghana Governor Dr. Maxwell Opoku-Afari, and other government officials for their continued cooperation and commitment to reform.

The fifth ECF review marks a major milestone in Ghana’s ongoing economic turnaround.

With inflation easing, fiscal discipline improving, and debt restructuring progressing, the forthcoming IMF disbursement could reinforce confidence among investors and development partners; a timely boost as Ghana seeks to consolidate its recovery and strengthen macroeconomic resilience.