Some economic analysts are calling on the government to accelerate efforts in providing the necessary assurances to the International Monetary Fund (IMF) to ensure the smooth continuation of the country’s bailout program.
Ghana recently reached a staff-level agreement of the IMF following a review of its progress on key policy reforms and economic targets, setting the stage for the release of a $370 million tranche.
Speaking to Citi Business News, Economist Professor Godfred Bokpin stressed the importance of maintaining momentum to secure full executive board approval and continued support from the Fund.
“Government has demonstrated good faith, and for that reason, the Fund is inclined to give us a clean bill of health to some extent. However, if you read the staff report thoroughly, there are still a number of reservations that must be addressed urgently,” he noted.
Prof. Bokpin added that further steps will likely be required from the government before the IMF Executive Board meets to finalize the agreement.
Despite the recent progress, the IMF noted a significant dip in program performance towards the end of 2024. The Fund attributed this to fiscal slippages ahead of the general elections, which resulted in a sharp rise in outstanding payments, missed inflation targets, and delays in key reforms.
In response, Ghana’s new administration has introduced a set of corrective measures, including a more disciplined 2025 national budget and strengthened public financial management reforms aimed at restoring program momentum.
The IMF mission also held talks with Ghanaian authorities on addressing long-standing structural weaknesses in fiscal management, procurement processes, and social protection—particularly to shield the most vulnerable from the effects of inflation and fiscal adjustments.
Additionally, the Bank of Ghana’s recent policy rate hike is expected to support ongoing efforts to curb inflation.
On the structural side, the government has reaffirmed its commitment to transparency and governance reforms, especially in the management of State-Owned Enterprises (SOEs) within the gold, cocoa, and energy sectors.