The Executive Board of the International Monetary Fund (IMF) has approved for disbursement a sum of $367 million to Ghana after completing the fourth review of its 36-month Extended Credit Facility arrangement despite experiencing fiscal slippages towards end of year 2024 that derailed the programme as a result of election-related spending. The IMF, however, commended the new administration for responding decisively in meeting programme targets and staying on track in the structural reform agenda. It noted that, the government’s ability to pass “a strong budget” amidst implementing a raft of public financial management reforms, monetary policy tightening and adjusting electricity prices contributed to how the West African country secured those programme targets.

“The new authorities have adopted strong corrective measures to address the fiscal impact of 2024 slippages and ensure the fiscal program remains on track, including achievement of a 1½ percent of GDP fiscal primary surplus in 2025. This will be achieved through additional revenue mobilization and expenditure rationalization—while protecting the vulnerable from the impact of policy adjustment,” IMF said in a statement

The IMF Board’s approval follows the payment of $349.52 million that Government of Ghana made in Eurobond debt service obligations on Thursday, July 3. The Finance Minister, Cassiel Ato Forson, said in a statement that the approval has validated the country’s commitment to fiscal discipline and economic transformation. He said, “Today marks another decisive step forward in Ghana’s economic recovery journey, demonstrating that our reform agenda is not just working – it’s exceeding expectations and rebuilding confidence in our nation’s financial future!”

 Ghana’s outlook for the years ahead is promising with ongoing structural reforms and fiscal policy adjustments by the government but cannot be sustained without “timely and continued efforts to further strengthen revenue administration, bolster public financial management, and improve State-Owned Enterprises (SOEs) management—including by decisively tackling challenges in the energy and cocoa sectors”, the IMF warned