Economists urge action as Ghana awaits IMF’s $370m approval

Economic analysts are urging the government to speed up its efforts. They want assurances for the International Monetary Fund (IMF). This is crucial for continuing Ghana's bailout program.

Ghana recently reached a staff-level agreement with the IMF. This followed a review of its progress on key reforms and targets. The agreement sets the stage for a $370 million release.

Economist Professor Godfred Bokpin spoke to Citi Business News. He emphasized the need to maintain momentum for full approval from the IMF. He noted that while the government has shown good faith, there are still concerns to address.

Prof. Bokpin mentioned that more steps are needed before the IMF Executive Board meets. Despite recent progress, the IMF reported a decline in program performance towards late 2024. They attributed this to fiscal issues ahead of general elections.

These issues led to increased outstanding payments and missed inflation targets. In response, Ghana’s new administration has introduced corrective measures. These include a disciplined 2025 national budget and improved public financial management reforms.

The IMF also discussed long-standing structural weaknesses with Ghanaian authorities. They focused on fiscal management, procurement processes, and social protection for vulnerable groups. Additionally, the Bank of Ghana raised its policy rate to help curb inflation.

On structural reforms, the government reaffirmed its commitment to transparency and governance improvements. This is especially important in managing State-Owned Enterprises (SOEs) in gold, cocoa, and energy sectors.