Eight reforms the IMF wants Ghana to complete after first PCI review

The International Monetary Fund (IMF) has outlined eight key reform priorities Ghana must fulfil following the first review of its Policy Coordination Instrument (PCI), as the country works to consolidate macroeconomic stability and strengthen public financial management.

The priorities cover monetary policy, domestic revenue mobilisation, fiscal oversight, transparency and public sector governance.

The announcement follows a staff-level agreement between the IMF and Ghana on the first review of the country’s 36-month programme under the PCI, marking progress in efforts to sustain economic stability and advance fiscal reforms.

In its end-of-mission statement, the Fund identified the following outstanding priorities:

1. Reform the Bank of Ghana’s liquidity management framework.

2. Complete the rollout of the Integrated Tax Administration System.

3. Operationalise the Fiscal Council.

4. Prepare a comprehensive Fiscal Risk Statement.

5. Publish the audit of the Electricity Company of Ghana’s (ECG) collection accounts.

6. Adopt the Conduct of Public Officers Bill.

7. Publish the second National Ethics and Anti-Corruption Action Plan.

8. Strengthen oversight and governance of state-owned enterprises.

The IMF said completing the reforms within the agreed timelines would be important for improving institutional accountability, strengthening fiscal transparency and supporting private sector investment.

Despite progress under the programme, the Fund cautioned that Ghana’s economic recovery remains exposed to significant domestic and external risks.

External vulnerabilities include volatility in global gold, cocoa and oil prices, geopolitical tensions and tighter global financial conditions, all of which could affect economic stability.

Domestically, the IMF identified substantial debt rollover requirements, fiscal pressures arising from the energy, cocoa and gold sectors, and lingering financial sector weaknesses as key risks.

To manage these vulnerabilities, the IMF said Ghana would need to maintain prudent monetary policy, allow greater exchange rate flexibility and strengthen its international reserve buffers.

The Fund also stressed the importance of building up a sinking fund to help meet maturing debt obligations.

The completion of the outstanding PCI reforms, alongside continued risk management, is expected to support Ghana’s efforts to preserve macroeconomic stability and strengthen confidence in its economic management.