The International Monetary Fund (IMF) has given the green light for the immediate release of approximately $360 million to Ghana to bolster its economic recovery efforts, just ahead of the country’s upcoming presidential election.
According to the IMF, Ghana has made significant strides under its $3 billion economic reform program, with notable improvements in debt restructuring, economic growth, and inflation reduction. This latest disbursement brings the total amount received under the agreement since May 2023 to $1.9 billion.
In a statement, the IMF praised Ghana’s performance under the program, stating that the country’s reform initiatives are yielding positive results. Deputy Managing Director Bo Li emphasized the importance of maintaining fiscal discipline both before and after the December 7 election, while also ensuring that vulnerable populations are shielded from any negative impacts of fiscal adjustments.
Ghana’s GDP is projected to expand by 4.0% this year, with inflation expected to decrease to 8.0% by the end of 2025.
This approval comes at a crucial juncture for Ghana, with the economy taking center stage in the presidential race between Vice President Mahamudu Bawumia of the ruling New Patriotic Party (NPP) and former President John Mahama of the opposition National Democratic Congress (NDC).
Bawumia has highlighted the economic stability achieved under the NPP’s leadership, while Mahama has pledged to renegotiate certain aspects of the IMF deal to prioritize social spending and infrastructure development.
Once a darling of investors, Ghana faced a financial crisis in 2022, leading to a default on external debt and the subsequent negotiation of a three-year IMF bailout.
The IMF has urged Ghana to maintain its fiscal policy adjustments and strengthen social programs to solidify its economic recovery. With the December 7 election looming, the disbursement of funds serves as both a financial lifeline and a litmus test of voter confidence in Ghana’s economic trajectory.
