After the $3bn bailout: 10 things the IMF still wants Ghana to do

The International Monetary Fund (IMF) Executive Board has approved the sixth and final review of Ghana's US$3 billion Extended Credit Facility (ECF) programme, unlocking a final disbursement of approximately US$371 million and formally bringing the country's three-year bailout programme to an end.

The approval marks the successful completion of the programme launched in May 2023 to help Ghana restore macroeconomic stability following the severe economic challenges experienced in 2022.

With the bailout programme concluded, Ghana is transitioning to a 36-month Policy Coordination Instrument (PCI)—a non-financing arrangement that will guide the country's next phase of economic reforms while strengthening investor confidence and policy credibility.

However, the IMF has emphasised that the conclusion of the bailout programme does not mark the end of Ghana's reform agenda. Instead, it has outlined a set of policy priorities designed to consolidate economic gains, strengthen fiscal discipline and promote sustainable long-term growth.

The IMF wants Ghana to make the new Policy Coordination Instrument the foundation of its post-bailout economic programme.

Although the PCI does not provide financial assistance, it serves as an important signal to investors, development partners and international credit rating agencies that Ghana remains committed to prudent macroeconomic management and structural reforms.

The Fund believes successful implementation of the PCI will help maintain investor confidence and improve access to international financing.

The IMF considers stronger domestic revenue collection essential to Ghana's long-term fiscal sustainability.

It is urging government to:

• Broaden the tax base.
• Improve tax administration.
• Increase tax compliance.
• Mobilise more domestic revenue to finance development projects.

According to the Fund, stronger revenue mobilisation will reduce Ghana's dependence on borrowing and create more fiscal space for priority spending.

The IMF says maintaining the operational independence of the Bank of Ghana (BoG) remains critical to preserving monetary policy credibility.

It wants the central bank to permanently discontinue quasi-fiscal operations while completing the transfer of its domestic gold purchase programme to the Ghana Gold Board (GoldBod).

The Fund believes this will allow the central bank to focus on its core mandate of maintaining price and financial stability.

Although Ghana has made significant progress in reducing inflation, the IMF says restoring the Bank of Ghana's financial position remains a priority.

Government has already committed to recapitalising the central bank by 2032, and the IMF expects this commitment to be fully implemented.

A stronger balance sheet, the Fund says, will improve the Bank's resilience and strengthen confidence in Ghana's financial system.

The IMF notes that Ghana has reached agreements with official bilateral creditors and most commercial creditors.

However, negotiations with a small number of external commercial creditors remain outstanding.

The Fund is urging government to conclude those negotiations through good-faith engagement in order to complete Ghana's debt restructuring programme and strengthen debt sustainability.

The IMF continues to identify state-owned enterprises, particularly those in the energy and cocoa sectors, as significant fiscal risks.

It is recommending:

• Stronger corporate governance.
• Improved financial oversight.
• Enhanced accountability.
• Reforms to reduce future financial liabilities.

According to the Fund, addressing weaknesses in these entities is critical to preventing future debt accumulation.

The IMF wants Ghana to maintain its commitment to reducing public debt to 45 percent of GDP by 2034.

While acknowledging improvements in the country's fiscal outlook, the Fund stresses that government spending must remain consistent with long-term debt sustainability.

Maintaining fiscal discipline, it says, will be essential to preserving macroeconomic stability.

Although Ghana's financial sector has become more resilient, the IMF believes vulnerabilities remain in some state-owned and private financial institutions.

The Fund is calling for:

• Stronger financial sector supervision.
• Prompt corrective measures where necessary.
• Completion of Ghana's financial crisis management framework.
• Improved resolution mechanisms for distressed institutions.

These measures are expected to strengthen financial stability and protect depositors.

The IMF says fiscal consolidation should not come at the expense of vulnerable households.

It is encouraging government to use improvements in fiscal performance to strengthen social protection programmes and ensure that economic recovery benefits all segments of society.

The Fund believes inclusive growth will support long-term economic stability and encourage greater private-sector participation.

The IMF identifies stronger governance as a key pillar of Ghana's post-bailout reform agenda.

Among its recommendations are:

• Effective implementation of the reformed asset declaration framework.
• Passage of the Conduct of Public Officials Bill currently before Parliament.
• Continued efforts to improve transparency and accountability across public institutions.

According to the Fund, stronger governance reforms will enhance public trust while reinforcing investor confidence in Ghana's economy.

With the successful completion of the Extended Credit Facility programme, Ghana now enters a new phase focused on sustaining macroeconomic stability without IMF financial assistance.

The Policy Coordination Instrument will provide continued policy guidance as government works to consolidate recent gains, maintain fiscal discipline, strengthen institutions and promote inclusive economic growth.

The IMF maintains that consistent implementation of these reforms will be crucial to ensuring Ghana's economic recovery remains durable, resilient and capable of delivering long-term prosperity.