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The International Monetary Fund (IMF) has issued a cautionary note to Ghana, highlighting that the economic progress achieved under the Extended Credit Facility (ECF) programme remains fragile and requires sustained efforts to consolidate. The warning comes as Ghana continues to implement critical reforms aimed at stabilizing its economy and addressing fiscal challenges.
According to the IMF, while Ghana has made notable progress in stabilizing its economy, the gains remain vulnerable to several risks, including external shocks, delays in policy implementation, and lingering structural weaknesses. In its report on Ghana, the IMF emphasized the need for fiscal discipline, enhanced revenue mobilization, and timely implementation of reforms to solidify the recovery process.
“While encouraging continued financial system recapitalization and tackling financial sector legacy issues remain important, further reducing inflation and rebuilding international reserves hinge on maintaining a prudently tight monetary policy stance and improving foreign exchange market operations,” the IMF stated.
It further stressed the need for additional measures to protect vulnerable groups from the impact of economic adjustments and reforms, noting that such efforts are critical to fostering an inclusive recovery. “Finally, additional efforts to protect the vulnerable from the impact of adjustment and reforms are warranted to foster an inclusive recovery,” the Fund added.
The report also pointed out that delays in securing key funding, particularly from development partners like the World Bank, could derail Ghana’s efforts to stabilize its fiscal position. The success of Ghana’s economic reform programme under the ECF largely depends on the timely disbursement of funds and strict adherence to policy measures aimed at addressing debt vulnerabilities and improving economic resilience.
The IMF urged the Ghanaian government to remain focused on its reform agenda, warning that any deviations could reverse the progress made so far. It called for strong collaboration among policymakers, Parliament, and other stakeholders to ensure the programme’s success and pave the way for sustainable growth and long-term economic stability.
“There have also been delays in the reforms needed to unlock access to budget and other types of support from key development partners, in part due to parliamentary gridlock. The political debate has been dominated by the December 7, 2024, general elections,” the IMF noted.
The Fund also highlighted that policy priorities outlined by leading presidential contenders align with the objectives of the ECF-supported programme. “Policy statements from leading presidential contenders highlight tackling debt risks, increasing employment, and addressing high costs of living as the main priorities, consistent with the objectives of the current ECF-supported programme.”
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