The International Monetary Fund (IMF) has officially described Ghana’s performance under its three-year Extended Credit Facility (ECF) programme as “broadly satisfactory,” commending the government for sustained reform efforts that, combined with favourable commodity prices, have delivered substantial macroeconomic stabilisation and a marked improvement in debt sustainability.
The assessment, contained in the Fund’s concluding statement following the completion of the sixth and final review of the US$3 billion programme, paints a picture of a country that has successfully navigated a severe economic crisis but still faces significant structural vulnerabilities that require continued vigilance.
A Remarkable Turnaround
The IMF noted that Ghana’s reforms have produced tangible results across key metrics. Inflation, which peaked at over 50% in 2023, has fallen sharply to 5.3% as of June 2026. International reserves have been rebuilt beyond programme targets, nearly doubling to US$11.9 billion by end-2025. The primary fiscal balance has swung from a large deficit to a surplus of 2.1% of GDP, reflecting disciplined expenditure control and revenue mobilisation.
The comprehensive debt restructuring—encompassing both domestic and external obligations—is largely complete, the Fund said, and Ghana’s risk of debt distress has been downgraded from “high” to “moderate” two years ahead of schedule. This upgrade, the IMF emphasised, is a direct result of the policy measures implemented under the ECF.
Transition to the Policy Coordination Instrument
With the ECF programme now concluded, the IMF stressed that sustained reform implementation under the newly approved 36-month Policy Coordination Instrument (PCI) is essential to consolidate these gains and address remaining vulnerabilities. The PCI—a non-financing framework—will serve as a policy anchor, signalling to donors, markets, and investors that Ghana remains committed to upper-credit-tranche-quality policies even without IMF financial support.
“Going forward, sustained reform implementation under the new Policy Coordination Instrument is essential to consolidate these gains and address remaining vulnerabilities,” the IMF stated.
Fiscal Discipline Remains Paramount
The Fund identified maintaining fiscal discipline as a key priority for Ghana, particularly as the country seeks to address pressing development, social, and security needs while safeguarding debt sustainability consistent with its debt anchor.
To that end, the IMF urged the government to:
· Further strengthen domestic revenue mobilisation,
· Improve public financial and investment management,
· Enhance oversight of state-owned enterprises (SOEs), particularly in the energy and cocoa sectors, and
· Strengthen social protection programmes for the most vulnerable.
These measures, the Fund said, are critical to ensuring that the fiscal gains achieved under the ECF are not eroded by new spending pressures or inefficiencies in state enterprises.
Monetary Policy and Central Bank Independence
The Bank of Ghana (BoG) received praise for successfully anchoring disinflation and rebuilding external buffers, while cautiously easing its policy stance in recent months. However, the IMF cautioned that preserving monetary policy credibility will depend squarely on safeguarding central bank independence.
Specifically, the Fund called for:
· Full implementation of the transfer of the Domestic Gold Purchase Programme (DGPP) from the BoG to GoldBod—the newly established state gold trading entity—to remove quasi-fiscal activities from the central bank’s balance sheet.
· Permanent cessation of any quasi-fiscal operations by the BoG.
· Delivery on the agreed recapitalisation plan for the central bank to ensure its financial soundness.
The DGPP, which allows the BoG to purchase locally mined gold to bolster reserves, had temporarily caused a minor breach of an IMF performance criterion in December 2025 due to cost-sharing arrangements. The Fund granted a waiver for that breach, citing corrective actions taken by the authorities.
Financial Sector Vulnerabilities Persist
While financial sector resilience has improved overall, the IMF warned that vulnerabilities persist, particularly in some state-owned and private banks, as well as specialised deposit-taking institutions (SDIs). The Fund called for decisive corrective measures, robust supervision, and the finalisation of a crisis management and resolution framework to safeguard financial stability.
“Looking ahead, the safeguard of financial stability warrants decisive corrective measures, robust supervision, and finalisation of the crisis management and resolution framework,” the statement read.
Governance and Transparency
The IMF also underscored the need for sustained progress on governance, noting that timely enactment of the reformed Conduct of Public Officials bill—which has been in legislative limbo for years—would further bolster transparency, accountability, and public trust. The Fund views governance reforms as integral to ensuring that the gains from the ECF are not undermined by corruption or weak institutional oversight.
Background: From Crisis to Recovery
Ghana’s ECF programme was approved in May 2023 after the country plunged into its worst economic crisis in decades, triggered by unsustainable debt levels, rampant inflation, and a collapsing currency. The government, under President John Mahama, embarked on a bold reform agenda that included:
· A domestic debt exchange programme restructuring over GH¢100 billion in local bonds.
· An agreement with official creditors to restructure external debt, which unlocked IMF support.
· Fiscal consolidation measures, including cuts in discretionary spending and increases in tax revenues.
The programme required Ghana to meet stringent quantitative targets and structural benchmarks across six reviews. All reviews were successfully completed, thanks in part to a favourable external environment—particularly the surge in global gold prices, which boosted export earnings and foreign exchange reserves.
Outlook
With the ECF officially concluded, Ghana now transitions to the PCI framework, which will require continued adherence to fiscal and monetary targets without the financial cushion of IMF disbursements. The government will also face the political challenges of an election cycle, where pressure to increase spending may test its commitment to reform.
The IMF’s broadly satisfactory rating is a significant endorsement, but the Fund’s detailed recommendations—from SOE reform to central bank independence—make clear that the hard work is far from over. As the Fund itself noted, the goal is to consolidate gains and address vulnerabilities, not to rest on past achievements.
