IMF Commends Ghana’s Economic Recovery, Warns of Energy and Debt Risks
Fund cites falling inflation and improved investor confidence but urges reforms in ECG, COCOBOD and fiscal management.
- IMF says Ghana’s economic recovery programme has achieved major stabilisation gains.
- Fund warns global uncertainty and state enterprise risks could threaten progress.
- IMF calls for reforms in energy, cocoa sector and anti-corruption systems.
The International Monetary Fund has praised Ghana’s economic recovery under its Extended Credit Facility (ECF) programme, citing major improvements in inflation, debt sustainability, foreign reserves and confidence in the cedi.
At the end of a mission to Accra, IMF officials announced that they had reached a staff-level agreement with the Government of Ghana on the sixth and final review of the ECF programme, alongside discussions for a new 36-month Policy Coordination Instrument (PCI) to support future reforms.
The IMF mission, led by Ruben Atoyan, said Ghana’s economic performance in 2025 exceeded expectations due to stronger growth across sectors and high gold export earnings.
According to the Fund, inflation has declined significantly, international reserves have improved, and investor confidence in the local currency has strengthened.
The IMF also noted that Ghana recorded a primary fiscal surplus above programme targets while making substantial progress in restructuring both domestic and external debt.
It highlighted Ghana’s return to the domestic Treasury bond market earlier this year as a sign of renewed market confidence.
Despite the positive outlook, the Fund warned that global economic uncertainty and domestic fiscal vulnerabilities continue to threaten the recovery process.
The IMF pointed to rising geopolitical tensions in the Middle East as a potential risk that could trigger increases in energy, food and fertiliser prices, with possible consequences for Ghana’s economy.
It also identified state-owned enterprises and quasi-fiscal activities as key risk areas that require urgent reforms.
The proposed PCI programme, which does not involve direct financing, is expected to focus on fiscal discipline, debt sustainability, financial sector reforms, governance improvements and inclusive growth.
The IMF stressed the need for stronger oversight of public institutions, especially in the energy and cocoa sectors.
In the energy sector, the Fund urged the government to address operational inefficiencies at the Electricity Company of Ghana (ECG), improve revenue collection and reduce power generation costs.
On the cocoa sector, it called for deeper reforms at COCOBOD to improve efficiency and long-term financial sustainability.
The IMF also raised concerns about losses linked to the Bank of Ghana’s Domestic Gold Purchase Programme, warning that such quasi-fiscal activities could undermine transparency and financial stability.
Additionally, the Fund encouraged Ghana to strengthen anti-corruption measures, including improving asset declaration systems and governance transparency.
While commending the resilience of Ghanaians during the economic adjustment period, the IMF cautioned that maintaining the gains achieved so far would require consistent reforms and disciplined economic management to avoid past cycles of debt accumulation and fiscal instability.
