'Ghana’s IMF exit is a political show' - Bright Simons warns of missed reform opportunity

Ghana's decision to leave the IMF program early is more about appearances, according to Bright Simons. He is the Vice President of IMANI Africa, a policy think tank.

On April 24, he spoke on Joy News’ PM Express Business Edition. He called the move “a political strategy masquerading as economic management.”

Simons warned that both the government and the IMF will celebrate this exit. However, he believes Ghana will struggle to meet targets by 2028 without being in the program.

He argues that leaving undermines any real commitment to fiscal goals. “Do we need the program to reach those targets?” he asked. He thinks those targets may not matter by then.

Simons accused both the IMF and Ghana’s government of focusing on appearances over accountability. “They’ve elevated signaling above facts,” he said. The government will benefit from this situation.

He believes exiting removes necessary pressure for reforms between 2026 and 2028. If the IMF truly wanted Ghana to succeed, it should have supported an extension.

This support could have helped implement reforms needed for those years. Instead, Simons predicts Ghana will seek financing elsewhere with its new flexibility.

“They have more options now,” he noted. If they avoid the IMF program for market access, key targets may become irrelevant.

Simons cited Kenya and Nigeria as examples of countries taking similar paths. Kenya ended its program early and borrowed $1.5 billion from Gulf nations.

Nigeria chose not to pursue an IMF program at all. However, Simons questioned if Ghana has the political will for meaningful reforms without external oversight.

“It’s irrelevant if you’re not serious about hitting targets,” he stated. What matters is whether there are genuine reforms happening, which he does not see.

Despite limited financing from the IMF compared to market borrowing, its value lies in credibility and discipline. “The program forces governments to make tough choices,” he explained.

Bright Simons concluded with a warning: “This is politics over purpose.” He cautioned that history shows how such decisions often end poorly.