IMF, Ghana reach staff-level agreement on fifth program review

The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement with the Government of Ghana on the fifth review of the country’s three-year Extended Credit Facility (ECF) programme.

The agreement, led by IMF mission chief Ruben Atoyan, follows two weeks of discussions held in Accra from September 29 to October 10, 2025.

The ECF arrangement, approved on May 17, 2023, provides Ghana with a total of SDR 2.242 billion (about US$3.2 billion). Upon completion of this latest review by the IMF Executive Board, Ghana will receive an additional SDR 267.5 million (about US$385 million), bringing total disbursements to SDR 1,975.5 million (approximately US$2.8 billion).

“IMF staff and the authorities have reached a staff-level agreement on the fifth review of Ghana’s economic programme under the Extended Credit Facility arrangement.”

“This staff-level agreement is subject to IMF management approval and executive board consideration,” said Mr Atoyan in a statement issued by the Fund.

According to the IMF, Ghana’s economic recovery is gaining strength. “Macroeconomic stabilisation is taking root. Growth in 2025H1 was stronger than anticipated, underpinned by strong services activity and agricultural output,” Mr Atoyan noted.

He added that robust exports—especially of gold and cocoa—have boosted the external sector, while “international reserves accumulation continues to exceed the ECF-supported program targets, and the cedi appreciated markedly in the first half of the year.”

The Fund projects Ghana’s economy to grow by 4.8 per cent in 2026, with inflation expected to remain within the Bank of Ghana’s target band of 8±2 per cent. Atoyan said the country’s solid current account surplus will continue to support reserve buildup, though external risks persist due to uncertainties in global commodity prices.

The IMF team commended the government for tackling long-standing issues in the energy sector. “The government has renegotiated legacy arrears and power purchasing agreements with most independent power producers (IPPs). Tariff adjustments are now conducted quarterly, helping better reflect costs,” Atoyan said. Payments under the Cash Waterfall Mechanism have also “increased significantly”.

On fiscal performance, the IMF noted that “the primary balance for the first eight months of 2025 posted a surplus of 1.1 percent of GDP, on track to achieve the 1.5 percent of GDP target by year-end.” The authorities, he said, are preparing a 2026 budget that maintains a 1.5 per cent primary surplus, consistent with Ghana’s new Fiscal Responsibility Framework.

The mission also acknowledged progress on debt restructuring. “Following the signing of a Memorandum of Understanding with the Official Creditor Committee under the G20 Common Framework, bilateral agreements have been concluded with five countries,” Atoyan said. “The authorities are actively engaging in negotiations with remaining commercial creditors to finalise debt treatments.”

The IMF further highlighted Ghana’s monetary easing as inflation trends downward. “With inflation falling towards its target band, the BoG has embarked on an easing cycle, cutting the policy rate by a cumulative 650 basis points to 21.5 percent,” he said. A structured foreign exchange operations framework, developed in collaboration with the Fund, is also being used to “smooth excessive market volatility”.

The statement acknowledged ongoing reforms in Ghana’s financial and governance sectors. “The authorities have taken strong actions to support financial stability, including by implementing the strategy to restructure and reform state-owned banks,” Atoyan stated. The recapitalisation of these banks is expected to be completed by the end of 2025.

He added that a “Governance Diagnostic Assessment report was completed and will be published in the coming weeks,” noting that continued efforts are needed “to improve transparency and oversight, particularly in the management of SOEs in the gold, cocoa, and energy sectors.”

The IMF mission met with Finance Minister Cassiel Ato Forson, Bank of Ghana Governor Dr Johnson Asiama, and other government officials, as well as representatives of public institutions and development partners.