Ghana Seeks Additional IMF Funding to Bolster Economic Recovery

Ghana's Finance Minister, Ken Ofori-Atta, has hinted at the possibility of seeking additional funding from the International Monetary Fund (IMF) to support the country's economic recovery. This comes as Ghana continues to grapple with the aftermath of the COVID-19 pandemic and the global economic downturn.



In an interview with local media, Ofori-Atta stated that the government is exploring all available options to stabilize the economy and restore growth. He noted that the IMF has been a crucial partner in Ghana's efforts to manage its economic challenges, and that the country is open to discussing further financial support with the fund.

Ghana's economy has faced significant headwinds in recent years, with real GDP growth decelerating from 3.8% in 2022 to 2.9% in 2023. Inflation has also been a major concern, rising from 31.5% in 2022 to 40.3% in 2023, driven mainly by food prices and currency depreciation.

The government has implemented a series of measures to address these challenges, including fiscal consolidation, debt restructuring, and structural reforms. However, the road to recovery remains long and fraught with obstacles, and additional financial support from the IMF could provide a much-needed boost.

Ofori-Atta emphasized that any additional funding would be subject to the IMF's strict conditions and would require Ghana to maintain its commitment to fiscal discipline and structural reforms. He also noted that the government is working closely with the IMF to ensure that any new funding aligns with the country's debt restructuring and fiscal consolidation plans.

The IMF's Extended Credit Facility (ECF) program, approved in May 2023, has provided Ghana with much-needed financial support, with the first disbursement of $600 million made in July 2023. A staff-level agreement on the third review of the ECF program, reached in December 2024, could pave the way for an additional $360 million disbursement, subject to approval by the IMF Executive Board.



In conclusion, Ghana's Finance Minister has indicated that the country is open to seeking additional funding from the IMF to support its economic recovery. With the IMF's backing, Ghana could strengthen its fiscal consolidation efforts, reduce its fiscal deficit, and improve debt sustainability. Moreover, the IMF's support could help Ghana manage its macroeconomic challenges, promote private sector development, and mitigate the impact of the macroeconomic crisis on poverty levels and living standards. However, any additional funding would be subject to the IMF's strict conditions and would require Ghana to maintain its commitment to fiscal discipline and structural reforms.