Ghana’s economic recovery program under the Extended Credit Facility (ECF) has resulted in “substantial stabilisation gains,” according to the International Monetary Fund (IMF), which cited notable improvements in debt sustainability, stronger reserves, sharp drops in inflation, and increased confidence in the cedi.
Along with a request for a new 36-month non-financing Policy Coordination Instrument (PCI) to support reforms beyond the current bailout program, IMF staff confirmed in a statement following a mission to Accra that they had reached a staff-level agreement with the Government of Ghana on the sixth and final review of the ECF arrangement.
Between April 29 – May 15, 2026, the IMF mission headed by Mr. Ruben Atoyan travelled to Ghana for an Article IV consultation and to explore the future course of economic reforms following the end of the present support package.
The IMF said in a statement at the conclusion of the mission that Ghana’s program had surpassed expectations in a number of areas, with economic growth in 2025 above estimates because of widespread activity and historically large gold export receipts.
The IMF said, “Inflation has declined rapidly, international reserves have been rebuilt, and confidence in the cedi has improved.”
It further said that Ghana’s fiscal performance had improved dramatically, with a primary surplus exceeding program expectations in 2025 and a major drop in the public debt ratio.
According to the Fund, Ghana has made significant strides in restructuring its external and domestic debt, including agreements under the G20 Common Framework with almost half of its bilateral creditors.
The IMF claims that Ghana’s successful return to the domestic Treasury bond market earlier this year was a sign of increased investor confidence in the country’s economy.
The IMF warned that despite the progress, the nation’s recovery efforts remained threatened by domestic fiscal risks and worldwide economic uncertainties.
The Fund stressed the need for prudent policies and better economic buffers, warning that rising energy, food, and fertiliser costs could have an indirect impact on Ghana due to the prolonged conflict in the Middle East.
Additionally, it recognised vulnerabilities related to quasi-fiscal operations and state-owned firms as major issues for the upcoming phase of reforms.
It is anticipated that the planned PCI program, which will not include direct financing, will prioritise upholding fiscal restraint, protecting debt sustainability, enhancing governance and transparency, bolstering the financial sector, and promoting equitable economic growth.
The statement stated, “As macroeconomic stability takes hold, IMF engagement is pivoting from crisis stabilization to consolidation.”
According to the IMF, Ghana’s debt outlook has recently improved, creating “carefully calibrated fiscal space” that could enable the government to boost social interventions, support youth employment, and increase development spending while still meeting its debt reduction goals.
The Fund emphasised that better control of state institutions and more robust public finance management reforms would be crucial to maintaining these achievements.
The energy and cocoa industries received special attention since, according to the IMF, they are essential to safeguarding public finances.
The Fund recommended the government to address operational inefficiencies and losses at the Electricity Company of Ghana (ECG) in the energy sector.
This included lowering generation costs, improving revenue collection, and completing private sector participation in electricity distribution.
The IMF stated that more extensive structural changes were required in the cocoa industry to boost productivity and guarantee the Ghana Cocoa Board’s (COCOBOD) long-term financial viability.
Concerns regarding the Bank of Ghana’s Domestic Gold Purchase Program were also voiced by the IMF, which cautioned that losses associated with the program underscored the need to curtail quasi-fiscal activities and improve transparency around central bank operations.
In order to enhance governance and increase investor confidence, the Fund also demanded more robust anti-corruption measures, such as the public release of standardised asset declarations.
The IMF appreciated the Ghanaian people’s perseverance during the economic adjustment process and thanked Ghanaian officials for participating in the talks.
“Avoiding past policy slippages, including recurring cycles of fiscal imbalances, rising debt, weak buffers, and reform reversals, will be critical to safeguarding the hard-earned success,” the Fund said.
After being approved by IMF management, the staff-level agreement is anticipated to be formally presented to the IMF Executive Board.
Source: newsthemegh.com