IMF Approves $367 Million for Ghana After Fourth Program Review

In a move hailed as a strong endorsement of Ghana’s economic reform efforts, the International Monetary Fund (IMF) has approved the release of $367 million to the country following the successful completion of the fourth review under the Extended Credit Facility (ECF) agreement.

This brings the total disbursement under the $3 billion bailout package to $2.3 billion, providing vital foreign exchange support and reinforcing confidence in the government’s economic program. The review, concluded in early July, noted that Ghana had met key structural benchmarks, including fiscal consolidation, debt restructuring, and monetary policy tightening.

According to an IMF statement, Ghana’s performance under the program has remained “broadly satisfactory,” despite lingering challenges posed by global economic volatility, domestic inflation, and debt-related pressures. The disbursement, expected to hit the Bank of Ghana’s reserves this week, will boost the country’s international reserves and help stabilize the cedi.

Finance Minister Mohammed Amin Adam welcomed the disbursement, saying, “This injection is a major milestone in our journey to restore economic stability and regain investor confidence. It proves we are on track, and reforms are working.”

The IMF praised Ghana for reforms aimed at improving tax revenue collection, enhancing transparency, and restructuring its domestic and external debts. Notably, Ghana has reached agreements with bilateral creditors under the G20 Common Framework and is close to concluding external debt deals with Eurobond holders.

Despite the positive review, the Fund also flagged several vulnerabilities. Ghana’s debt remains elevated, and further work is needed to improve state-owned enterprise governance and ensure fiscal discipline, particularly with the 2026 general election on the horizon.

Analysts believe the latest tranche will ease short-term pressures on the cedi, which has appreciated by over 10% in 2025. However, with inflation still above 20% and interest rates at 29.5%, the economic recovery remains fragile.

The disbursement also unlocks potential funding from other development partners, including the World Bank, which is finalizing a separate $360 million budget support program. The synergy between these funds is expected to aid in clearing government arrears, particularly in road infrastructure and education.

Outlook: The IMF board will conduct its fifth program review in October 2025. Ghana’s continued access to these funds hinges on staying the course with reforms—especially in areas like energy sector debt, SOE governance, and broadening the tax base.

For now, however, the approval marks another step forward for a country rebuilding its economic credibility after years of financial turbulence.