The International Monetary Fund (IMF) has approved the immediate release of approximately $360 million to Ghana to support its economic recovery, just days before Ghanaians vote in a highly anticipated presidential election.
In a statement, the IMF commended Ghana’s progress under its $3 billion economic reform programme, citing improvements in debt restructuring, economic growth, and inflation reduction. This brings the total disbursed under the agreement since May 2023 to $1.9 billion.
“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off,” the IMF stated. Deputy Managing Director Bo Li emphasized the importance of maintaining fiscal discipline before and after the December 7 election while ensuring vulnerable populations are protected from fiscal adjustments.
Ghana’s GDP is expected to grow by 4.0% this year, with inflation forecasted to drop to 8.0% by the end of 2025.
The approval comes at a vital moment for Ghana, as the economy has become a central issue 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 touted economic stabilization under the NPP, while Mahama pledges to renegotiate aspects of the IMF deal to prioritize social spending and infrastructure.
Once an investor favourite, Ghana experienced a financial crisis in 2022, prompting the government to default on external debt and negotiate the three-year IMF bailout.
The IMF called on Ghana to sustain fiscal policy adjustments and enhance social programs to solidify its economic recovery. With the December 7 election looming, the disbursal offers a financial lifeline and a test of voter confidence in Ghana’s path forward.
