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Tag: IMF

Dr Razak Opoku’s Objective Assessment of Gold Trading Losses in Ghana

a). Specific Objectives of GoldBod:

1. To increase national foreign exchange reserves.

2. To stabilize the cedi.

3. To curb illegal gold smuggling.

b). Purported Losses at GoldBod:

$1.7 billion losses, reported by IMF.

c). Reasons for the $1.7 billion losses cited by IMF:

Losses caused by policy-related accounting cost or “quasi-fiscal” cost or trading shortfalls or transaction cost, and NOT as a result of direct cash loss or financial loss to the State.

Per page 10 of the report, “Losses accrued on gold trades are a combination of service and assay fees paid to GoldBod, discounts on gold sold to off-takers(exporters) and most importantly, exchange rate losses from the spread between the forex bureau rate paid to purchase gold and the cedi reference rate used for BoG(Bank of Ghana) accounting.”

Therefore, it is UNFAIR to soley blamed GoldBod for the $1.7 billion losses when Bank of Ghana is clearly in the picture.

d). Best Examples to Practically Explain the meaning of Policy-related Accounting Cost (“Quasi-Fiscal Cost”)

1. Government decision to spend about GH¢ 207 million on Fertilizer Subsidy, an amount which represents 50% price cut to benefit farmers.

2. Government decision to spend about GH¢ 25 billion on banking and financial sector clean-up exercise to protect the funds of depositors.

3. Government decision to offer a GH¢ 2 per litre cut (reduction) at the pumps to cushion consumers of petroleum products.

e). Is GoldBod Achieving its Specific Objective 1 (To Increase National Foreign Exchange Reserves):

Yes, but there is still room for improvements.

GoldBod has significantly contribute to the increase of the national foreign exchange reserves of Ghana, with estimated figure of about $10 billion.

Is it prudent strategy to lose $ 1.7 billion to attract a revenue of $10 billion? Yes or No answer.

Is there a better alternative gold trading policy for Ghana to raise $10 billion for the national foreign exchange reserves without the Country losing $1.7 billion as a result of policy-related accounting cost(quasi-fiscal cost)?

f). Is GoldBod Achieving its Specific Objective 2(To stabilize the Cedi):

Yes, so far there is relative stability of the cedi against the US Dollar and other major trading currencies since the introduction of the GoldBod initiatives.

However, there is still room for improvements.

We want to experience Ghana whereby $1 is equivalent to GH¢ 5, and also with the Cedi performing extremely better against other trading currencies.

g). Is GoldBod Achieving its Specific Objective 3 (To curb illegal gold smuggling):

Yes, but a lot more has to be done by GoldBod to completely eradicate gold smuggling.

According to the IMF, Ghana is estimated to have lost about $11.4 billion to gold smuggling between 2019 and 2024.

The discrepancy between gold exports reported by Ghana and imports recorded by the United Arab Emirates(UAE) exceeded $4 billion, according to the IMF Report.

$1.7 billion loss at Bank of Ghana caused by policy-related accounting cost versus $11.4 billion loss from 2019 to 2024 caused by gold smuggling, which of them should we be worried about the most as a citizens of Ghana?

h). Impact of GoldBod on the Activities of Galamsey

My major concerns are that:

1. what measures have GoldBod put in place to address galamsey activities in the country?, and also ensure that the GoldBod do not purchase gold from companies and individuals engaging in galamsey activities?

2. Is the operations of GoldBod significantly contributing to rising activities of galamsey in the Country?

3. How GoldBod has managed to reduce gold smuggling and by what estimate in terms of US Dollars?

i). Gold for Oil Programme and its losses from 2022-March 2025

The purposes of the Gold- for-Oil Programme(G4O) were:

1. To ease pressure on foreign exchange reserves.

2. Stabilize domestic fuel prices.

However, according to Bank of Ghana, the Gold-for-Oil(G4O) programme incurred financial losses of about GHS 2.43 billion, with the termination of the G4O programme in March 2025.

The net loss on gold trading for Gold-for-Reserves(G4R) and Gold-for-Oil(G4O) for 2024 was estimated to be around GHS 5.66 billion(approximately GHS 5.7 billion).

Conclusion

Bank of Ghana in trading partnership with Ghana Gold Board(GoldBod) has incurred a policy-related accounting costs of $1.7 billion according to the IMF, and this cost is not as result of directly losing cash(financial losses). However, this $1.7 billion loss is better compared to losing $11.4 billion between 2019-2024 to gold smuggling.

Both for Gold-for-Oil(G4O) and Gold-for-Reserves(G4R) incurred financial loss of GHS 5.7 billion but the question is that, were the policies of G4O and G4R able to achieved its intended purposes of currency stability, fuel prices stabilization, and prevention or reduction of gold smuggling?

As a Country, should we reverse to Gold-for-Oil(G4O) or Gold-for-Reserves(G4R) or maintain the Ghana Gold Board(GoldBod)?

…signed…

Razak Kojo Opoku(PhD)

August 20, 2026
Cedi’s Rollercoaster: From Africa’s 2025 champion to a shaky 2026 start

By Adnan Adams Mohammed

Two days ago, the nation was celebrating a historic milestone of the Ghana Cedi as the International Monetary Fund (IMF) officially crowned the Cedi as Africa’s best-performing currency for 2025. Yet, as the sun rises in late January 2026, the local currency has ‘shoved its feet off the rocks’ as it succumbed to market volatility.

According to a full-year review by the IMF, the Cedi defied early-year skepticism to appreciate by more than 40% against the US Dollar in 2025. This performance placed it at the summit of more than 20 major African economies, surpassing earlier conservative estimates by global financial firms.

The “Cedi Miracle” of 2025 wasn’t accidental. Market watchers point to a “perfect storm” of disciplined interventions:

● Massive Reserve Building: The Bank of Ghana (BoG) fortified its defenses with international reserves totaling nearly $14 billion.

● IMF-Supported Reforms: Strict adherence to structural benchmarks under the IMF programme restored investor confidence.

● The May Pivot: After a shaky first quarter in 2025, the currency staged a massive recovery in May, gaining 43% in that month alone a momentum it managed to carry through the end of the year.

The January Blues: A 4% Slip

Despite the accolades of 2025, the dawn of 2026 has brought a reality check. Data from the BoG’s January Summary of Economic and Financial Data reveals that the Cedi has lost 4.0% of its value against the “greenback” in the first 27 days of this year.

Currently, the interbank rate sits at GH¢10.88, up from the December close of GH¢10.45. On the retail market where most citizens and small businesses feel the pinch the rate has touched the GH¢12.00 mark.

Currency Interbank Rate (Jan 2026) MonthlyDepreciation

US Dollar ($) GH¢10.88 4.0%

GB Pound (£) GH¢14.77 4.9%

Euro (€) GH¢12.80 4.1%

Mixed Signals and the Path Ahead

Is this the start of a downward spiral or merely a seasonal “hiccup”? The current market signals are mixed. While the interbank market shows slight losses due to renewed corporate demand for foreign exchange, the retail market has actually shown signs of strengthening in the last 48 hours, with some rates cooling from GH¢12.15 back to GH¢11.90.

Databank Research remains optimistic, forecasting a rebound in the coming weeks. They cite two major factors: Anticipated BoG Injections: The central bank is expected to use its $14 billion “war chest” to temper bearish expectations.

Global Shifts: A “dovish” US Federal Reserve and a global trend of sovereigns trimming US Treasury holdings could weaken the dollar globally, providing a “tailwinds” effect for the Cedi.

“We are eyeing a GH¢10.70/US dollar base case,” notes Databank, suggesting that the current dip might be a strategic entry point rather than a cause for panic.

Ghana enters 2026 with a prestigious title from the IMF, but the title alone will not pay for imports. As the Bank of Ghana prepares to roll out additional policy measures this year, the focus remains on consolidation. For the average Ghanaian, the hope is that the 2025 champion finds its footing before the “January blues” turn into a year-long headache.

January 29, 2026
Energy sector shortfall persists …IMF warns of ballooning costs amid privatisation option

Ghana’s energy sector shortfall is projected to balloon to US$1.10 billion in 2026, despite marked improvements, the International Monetary Fund (IMF) has warned.

During the review period, the shortfall was over US$500 million, as assumed by the government through legacy debt payments or fuel purchases.

“The smaller budgeted shortfall is justified by the 2025 outturn, as well as the expected reduction in power generation costs from renegotiated PPAs and projected decreased reliance on costly liquid fuels,” the IMF said in its Staff Report on Ghana.

The IMF projects an energy sector shortfall of US$1.103 billion in 2026, comprising a US$925 million power sector shortfall and US$178 million gas sector shortfall. Revenue to be collected is projected at US$2.607 billion, whilst generation costs are estimated at US$3.53 billion.

“The government and IPPs have agreed to restructure their legacy debt,” the IMF noted. “In 2025’s Q3, the government agreed with nine IPPs on a comprehensive payment plan for legacy arrears accumulated up to end-June 2025, including substantial haircuts (15 to 30%), significant upfront payments (around $300 million in 2025), and biannual payments for the remainder between 2026 and 2029.”

The IMF also revealed plans to privatise the Electricity Company of Ghana (ECG), stating that “by the end of 2025, a transaction advisor is expected to be hired to oversee the selection process for private sector concessionaires for electricity distribution.”

ECG’s payments to independent power producers (IPPs) have increased significantly, reaching $308 million in the first half of 2025, compared with $325 million for 2024 in total. The IMF urged more action to restore ECG to financial sustainability and reduce fiscal risks in the sector.

By Adnan Adams Mohammed

December 29, 2025
Ghana Goldbod’s success and challenges: IMF concerns and expert insights

Ghana’s domestic gold purchase programme, implemented through GoldBod, has sparked debate over its financial implications and broader economic impact.

While the Bank of Ghana (BoG) reported a US$214 million loss in the programme, experts argue the benefits outweigh the costs.

Dr. Steve Manteaw, a natural resource governance expert, attributes the loss to the BoG’s decision to buy gold at zero discount, a strategy aimed at discouraging smuggling.

“The loss is less than 3% of the forex income from exports,” he notes. The programme has helped BoG build record gold reserves, stabilising the cedi and contributing to declining inflation and interest rates.

“The net benefit of the reported losses is the over US$10 billion earned from gold exports, which is doing magic to the entire Ghanaian economy,” Dr. Manteaw noted while recommending using part of the windfall to support domestic production, reduce food imports, and diversify exports.

IMF Concerns

However, the IMF has expressed concerns over the programme’s risks, citing “significant downside risks” and potential pressure on BoG’s balance sheet and monetary policy credibility.

The Fund notes that operational costs from GoldBod, alongside trading shortfalls, have been identified as the major drivers behind losses under the Bank of Ghana’s Gold-for-Reserves (G4R) programme, which climbed to US$214 million within the first nine months of 2025.

The disclosure is contained in the International Monetary Fund’s Fifth Review report on Ghana’s three-year Extended Credit Facility (ECF) programme, which flags the losses as a key downside risk to the country’s broader stabilisation agenda.

According to the Fund, the losses were largely driven by trading losses incurred under the artisanal and small-scale mining (ASM) doré gold transactions component of the programme, as well as off-takers’ fees linked to GoldBod operations.

“In 2025 through end-Q3, losses from the artisanal and small-scale (ASM) doré gold transactions component of G4R have reached US$214 million, mostly on trading losses but also on GoldBod off-takers’ fees,” the report stated.

IMF warns of “significant downside risks”

Beyond the reported losses, the IMF cautioned about the rapidly expanding scale of the programme, particularly since the creation of GoldBod could expose Ghana to heightened risks. The Fund noted that the “large and increasing scale of the Gold-for-Reserves programme, notably since the creation of GoldBod, is a source of significant downside risks.”

BoG’s response to IMF

Although, Ghana successfully completed the 5th Review of the IMF ECF-supported programme on December 17, 2025, the review flagged financial risks associated with the Domestic Gold Purchase Programme (DGPP), noting it helped shore up Ghana’s international reserves, supported currency stability, and enabled access to foreign exchange without incurring new debt. GoldBod an aggregator for gold-based inflows from small-scale mining, works with the Bank of Ghana to ensure DGPP remains anchored in public policy objectives.

A new foreign exchange operations framework introduced by BoG was highlighted in the IMF report as a critical reform. The framework clarifies intervention triggers, separates reserve accumulation from market intermediation, and enhances transparency, aimed at deepening confidence in FX markets.

The BoG Board recently approved reforms to improve pricing and operational efficiency of the DGPP, to be rolled out in January 2026, aligning with budgetary provisions in the 2026 national budget to ensure GoldBod’s sustainability.

The Bank of Ghana is currently undergoing an annual external audit, thereby, alluding that, figures related to gold operation losses in 2025 remain speculative, with audited financial statements to be published next year.

Other Critics

Other critics argue that the programme’s benefits are being oversold. Policy commentator, Cadman Mills, urges caution, stating, “Propaganda cannot replace evidence. Economic credibility must be earned through transparency and results, not political spin.”

In a blunt warning, Mills urged the NDC communicators to “stop touting GoldBod achievements,” arguing that the initiative is still in its infancy and far from delivering measurable, life-changing results for the Ghanaian economy. According to him, public praise without clear data risks misleading citizens and undermining trust in economic reforms.

Mills questioned claims that GoldBod has significantly stabilized the cedi or transformed gold revenue management, insisting that Ghanaians are yet to feel any real impact in their daily lives. “Propaganda cannot replace evidence,” he stressed, adding that economic credibility must be earned through transparency and results, not political spin.

Sammy Gyamfi, GoldBod’s CEO on the other hand, has consistently defended the new institution, describing it as a strategic intervention designed to maximize value from Ghana’s gold resources and reduce reliance on foreign exchange markets. Supporters of the initiative argue that early signs point to improved coordination in the gold sector and long-term benefits for national reserves.

The exchange has reignited broader debates about economic accountability and political communication, with critics accusing government communicators of overselling policies before outcomes are fully realized. Others, however, argue that public confidence requires leaders to highlight progress, even at early stages.

The debate highlights the challenges of balancing economic gains with transparency and accountability. As Ghana navigates its economic recovery, the GoldBod initiative’s success will depend on effective implementation, robust oversight, and a commitment to delivering tangible benefits for citizens.

Dr Manteaw’s expanded stances

Dr Manteaw expanded further on his earlier stance providing answers to rhetoric on; “Why will BoG / GoldBod decide to buy gold at zero percent discount?”

“The answer is simple – to discourage smuggling. The unprecedented rise in domestic gold purchases suggest that miners find it attractive to sell their gold at zero percent discount to the GoldBod.

How has this benefitted the State?

“This has helped BoG to build unprecedented volumes of gold reserves, the export proceeds of which are used to shore up our local currency. The net benefit of the reported losses from the domestic gold trade is the over US$10 billion earned from gold exports, which is doing magic to the entire Ghanaian economy. The reported loss is less than 3% of the forex income from exports.

“Forex stability has been sustained since the inception of the GoldBod. This has fed into a general decline in inflation, interest rates, and other macro indicators. Fuel prices are coming down and easing the pressure on the budgets of motorists. If drivers were to respond with a corresponding reduction in fares, food prices will come down, and living conditions will improve.

“Now juxtapose this with a GH¢9.49 billion operating loss incurred by BoG in 2024, the third consecutive year of losses, with the highest (GH¢13.23 billion) loss recorded in 2023 and with almost no economy-wide positive impact.”

Recommendations for Sustaining the Gains

Among Dr Manteaw’s recommendations to sustain the gains of the gold-for-reserves programme, he shared some worries of the IMF stating that;

“I understand why the IMF will be worried. Reliance on commodity export to support the local currency can be risky, especially during periods of global price decline.

“It is therefore imperative to use part of the current windfall to support domestic production in order to reduce demand for forex – both Nkrumah and Acheampong called it “Import Substitution.” We should again support food production to reduce food imports.

“We should diversify our exports, away from traditional commodities to include more finished and semi-processed goods.”

Consequently, Dr Manteaw concluded on the note that, “not all IMF prescriptions are in our interest. We ought to recognise that we are the reason they exist. We will take their advice but let’s blend it with our own ideas. After all, the Saudis and the Emiratis do not shore up their currencies with chocolate but with dollars earned from their oil exports.”

By Adnan Adams Mohammed

December 29, 2025
Over-reliance on gold exports poses risk to 2026 budget – Analysts warn

Some market watchers are worried over the government’s heavy reliance on gold exports to build the country’s reserves, identifying it as a key underlying risk to the implementation of the 2026 Budget.

They point to volatility in international gold prices as a major vulnerability.

These concerns echo warnings from Fitch Solutions, which says risks to Ghana’s economic growth outlook remain tilted to the downside.

The UK-based firm identifies gold prices as the principal vulnerability, noting that its Commodities Team expects prices to average a record US$3,700 per ounce in 2026.

Analysts caution that while elevated gold prices may provide short-term fiscal relief, a sudden correction in global markets could weaken external buffers and place renewed pressure on the cedi.

This, they argue, underscores the need for a more diversified reserve-building strategy that is less exposed to commodity price shocks.

In an interview with Citi Business News, finance and tax analyst Nelson Cudjoe Kuagbedzi urged the government to reduce its overdependence on commodity exports, even as some commodities continue to perform strongly.

“Cocoa has done very well, we have also exported crude oil, remittances have contributed significantly, and inflows from the International Monetary Fund (IMF) have supported the reserves we have built. However, we cannot rely solely on commodity exports because of their inherent price volatility. We do not control international commodity prices, but where prices are favorable, we should take advantage of the windfall and continue to build reserves to support the stability of the cedi,” he said.

He further noted that broadening the export base would help cushion the economy against external shocks and enhance long-term macroeconomic stability.

December 22, 2025
At 6.3% inflation, it’s Clear: IMF projections don’t deliver results; competent economic management does

I’ve read from our friends in the NPP, a suggestion that Ghana’s present single-digit inflation is not necessarily an achievement of the current administration because the IMF had already projected that the country would reach around 8% inflation by 2025.

The argument seems to imply that the steep decline in inflation was automatic, a predetermined outcome of external forecasts, not the product of deliberate economic management. But a closer look at Ghana’s economic performance between 2017 and 2024, especially the large gaps between IMF projections and actual results, as well as the many missed targets under the previous government, shows clearly that forecasts on paper rarely deliver themselves.

Ghana’s economic history demonstrates that projections do not guarantee results; only disciplined management and credible policymaking can turn forecasts into reality.

To understand this better, it is important to examine the nature of IMF projections. They are not prophecies. They are conditional forecasts, indicative of what might happen if governments implement policies decisively, maintain fiscal discipline, and if external conditions remain stable.

Ghana’s experience demonstrates just how fragile these assumptions can be. For example, IMF debt sustainability assessments consistently underestimated Ghana’s debt path. By 2022, Ghana’s actual public debt had exceeded earlier IMF projections by tens of percentage points of GDP.

The IMF itself admitted that it underestimated the pace of debt accumulation due to the rapid depreciation of the cedi, rising interest costs, rollover pressures, and persistent fiscal overruns between 2018 and 2022. These were not minor deviations; they were massive miscalculations that ultimately pushed Ghana into another IMF programme.

The same pattern is seen in inflation forecasts. In 2019, the IMF projected that Ghana’s inflation would steadily decline toward 6% in the medium term. Yet by 2022, inflation spiralled past 30%, then beyond 40%, and eventually above 50%. Clearly, no IMF model anticipated the scale of Ghana’s inflation crisis. This drastic variance shows that projections can be completely derailed by policy slippages, global shocks, and structural weaknesses in the economy. If IMF projections were self-fulfilling, Ghana would never have experienced inflation anywhere near 50%.

In fact, as recently as last month, the IMF projected that Ghana would end 2025 with inflation at around 12%, not 8%, citing global uncertainties and vulnerabilities in emerging markets. This was reported widely in the media. But this is where the argument collapses for those claiming the IMF “predicted” our current performance: the IMF forecasted 12% inflation, yet Ghana’s actual inflation has already fallen to 6.3%, the lowest level in many years.

The Ghana Statistical Service reported an 11-month consecutive decline, reaching 6.3% in November 2025, far outperforming IMF expectations.

This alone proves the point: projections are not destiny. Policy is. The IMF forecasted 12%, but deliberate policy implementation delivered 6%. I anticipate, Ghana’s year-end inflation will not be more than 9%, contrary to the projections of the IMF.

That gap between forecast and outcome is the clearest evidence that the current macroeconomic results came from real work, not from any prediction in Washington.

The same story is reflected in growth projections. Before COVID-19, the IMF repeatedly projected that Ghana’s economy would continue growing strongly at 5–7%. Yet in 2020, real GDP growth collapsed to nearly zero. These forecasts assumed a stable fiscal environment and strong buffers, assumptions that did not hold. Later growth outcomes were similarly weaker than projected, which reinforces the central argument: projections only hold when governments act with discipline, consistency, and competence.

It was not only the IMF that missed targets. The previous NPP government repeatedly missed its own projections across growth, revenue, inflation, deficits, and debt. In 2018, it projected growth of over 6.8%, but the outturn was lower. In 2020, it projected a growth of 6.8%, but the final figure was around 0.5%. The 2020 deficit target was 4.7% of GDP, yet the actual deficit ballooned to more than 11%. In 2022, the government projected a deficit of about 7%, revised it down to 6.6% mid-year, and still ended the year with a deficit closer to 10%.

Revenue targets were also missed consistently, and the revenue-to-GDP ratio actually declined between 2017 and 2021. These failures, led to Ghana’s return to the IMF in 2023, debt restructuring, loss of market access, and macroeconomic instability.

Taken together, these examples point to a single unmissable conclusion: projections do not produce results. They are hopes and not achievements. Ghana’s economic history shows that without disciplined fiscal management, effective monetary coordination, and credible structural reforms, projections collapse under the weight of reality.

Ghana missed IMF projections. Ghana missed government projections. Ghana missed medium-term fiscal and debt targets. And Ghana missed revenue mobilisation plans. The problem was never the forecasts; it was the failure to implement the policies required to meet them.

It is, therefore, misleading, even intellectually dishonest, to claim that Ghana’s return to single-digit inflation can be dismissed simply because the IMF once wrote a projection on paper. The only time a forecast becomes reality is when policymakers take the necessary steps to make it happen.

That is why the real debate should not be about who predicted what. It should be about who delivered results despite the predictions. Ghana’s economic past proves this truth. And Ghana’s economic future will depend on it even more.

Richmond Eduku

Finance & Energy Policy Analyst

December 8, 2025
Ghana woos international investment, development support communities …at IMF/World Bank joint meeting

Throughout last week, at the 2025 IMF–World Bank Annual Meetings convened in Washington from October 13–18, Ghana’s high-level delegation led by Finance Minister Dr. Cassiel Ato Forson and Bank of Ghana Governor Dr. Johnson Asiama aggressively courted international investors and development partners with a message of economic stabilization, renewed policy credibility and investment-ready opportunities

In meetings on the sidelines of the Annual Meetings, officials underlined Ghana’s recent macroeconomic gains and a pipeline of projects seeking blended finance, private capital and technical partnerships.

Delegation briefings highlighted the government’s priority areas: energy-sector investment to reduce supply shortfalls, road and port infrastructure upgrades, agribusiness value-chain financing, and digital infrastructure meant to turbocharge fintech and services exports. Ghana’s pitch, officials say, is that the country has moved from crisis management to consolidation and now needs patient capital and development finance to sustain growth.

The Bank of Ghana Governor, Dr Johnson Asiama told reporters in Washington that the central bank has made tangible progress restoring foreign-exchange buffers and stabilising markets, crediting recent policy measures and initiatives that have channeled export proceeds into the formal banking system.

Dr. Johnson Asiama, speaking at the IMF/World Bank Governors Talk Series in Washington D.C., under the theme “From Crisis to Confidence: Ghana’s Journey to Macroeconomic Stabilisation”, asserted that “growth has rebounded, inflation has cooled, and Ghana is now outperforming expectations under the IMF programme.

“Inflation, which stood at 23.5 percent in January 2025, has since dropped to 9.4 percent in September the first single-digit rate in four years, beating the government’s 11.9 percent target.”

Dr. Asiama reaffirmed the central bank’s commitment to sustaining macroeconomic stability through prudent policy management and market confidence restoration.

Dr Asiama also flagged forthcoming regulatory frameworks including plans for virtual-asset oversight developed with IMF support as part of a broader effort to modernize Ghana’s financial architecture and reassure investors on transparency and risk management. He assured that Ghana is now positioned to exit the three year IMF’s Extended Credit Facility when it expires in May next year.

Dr Forson, in his statement, speaking to a packed audience of investors in Washington, underscored that the country’s economic turnaround is already evident in declining debt vulnerabilities and stronger macroeconomic fundamentals, reflecting the effectiveness of government policy interventions and reforms.

Consequently, Ghana’s economic growth is projected to rebound strongly in the final quarter of the year, as the second quarter grew 6.3% according to Ghana Statistical Service data, led by a revitalised real sector, while inflation, which has already seen significant declines, is expected to ease further and remain in single digits by year-end.

“The government remains on course to achieve a positive primary balance of 1.5% of GDP by the close of the fiscal year, a milestone that will further consolidate the gains made under ongoing fiscal reforms.

Dr. Forson reaffirmed the government’s dedication to implementing fiscal consolidation measures anchored on tight expenditure controls and prudent financial management.

This comes as the ministry has revealed that, over 70 public sector entities, including several Metropolitan, Municipal and District Assemblies (MMDAs), have complied with the Public Financial Management (PFM) Commitment Control and Expenditure Management Measures issued by the Minister for Finance on May 2, 2025.

The compliance update follows the submission of quarterly commitment control review reports to the Internal Audit Agency (IAA), in line with efforts to strengthen fiscal discipline and improve expenditure efficiency across government institutions.

The Ministry’s guidelines were designed to ensure that public entities commit and spend within approved budgetary limits, prevent the accumulation of arrears, and enhance transparency in the management of public funds.

Some of the institutions are GoldBod, Tema Oil Refinery, Ghana Enterprise Agency, Public Utilities and Regulatory Commission, Rent Control Department, State Interests and Governance Authority, Venture Capital Trust Fund and the Department of Parks and Gardens

Others include, NaCCA, Office of the Head of Civil Service, Office of the Administrator of Stool Lands, some Ministries, some Colleges of Education and Metropolitan, Municipal, and District Assemblies.

This high compliance rate signals increasing adherence to fiscal responsibility principles and improved coordination between internal auditors and spending officers.

The next phase is expected to focus on deepening real-time expenditure monitoring, addressing non-compliant entities, and promoting greater accountability across the public financial management ecosystem.

The move aligns with the government’s broader Public Financial Management (PFM) reform agenda, which seeks to consolidate gains in macroeconomic stability, control public spending, and strengthen the integrity of Ghana’s fiscal management framework.

Ghana’s finance team also sought to translate macro improvements into project-level commitments. Dr. Forson held talks with World Bank President Ajay Banga and other multilateral leaders aimed at accelerating concessional lending and technical support for public-private partnerships, while exploring guarantees and blended-finance facilities to mobilise private-sector participation in infrastructure and social-service projects. The Ministry’s public release framed these discussions as a push to “unlock new opportunities for the country’s development agenda.”

Dr. Forson said the renewed collaboration aims to channel World Bank resources toward sectors with the greatest impact on livelihoods and resilience. Ghana and the World Bank have agreed to deepen their partnership across five key sectors to accelerate the country’s economic transformation and strengthen long-term growth.

The talks focused on education, health, energy, roads, and agriculture, areas both sides described as central to Ghana’s medium- and long-term development goals.

“With this renewed collaboration, we are working together to accelerate Ghana’s journey toward a more resilient, inclusive, and sustainable economy,” he said.

The engagement signals the government efforts to leverage stronger multilateral partnerships to consolidate post-crisis recovery gains and attract new investments.

The World Bank currently finances several flagship projects in Ghana, ranging from education and social protection to infrastructure and agriculture. Strengthening this collaboration is expected to improve project implementation and expand access to concessional financing at a time when Ghana is implementing reforms under an International Monetary Fund–supported programme.

Addressing global investors on the sidelines of the Annual Meetings Dr Forson reaffirmed that the country’s economic recovery programme is on a firm path, assuring international investors of continued stability and resilience in the months ahead.

Dr. Forson said Ghana’s economic turnaround is already yielding measurable results, with declining debt vulnerabilities, improved fiscal discipline, and strengthened macroeconomic indicators.

According to Dr. Forson, Ghana’s economic growth is expected to rebound significantly in the last quarter of the year, buoyed by the recovery of the real sector, strong agricultural performance, and increased industrial productivity.

He stressed that the government’s fiscal strategy remains anchored on tight expenditure management, enhanced domestic revenue mobilisation, and transparent debt restructuring frameworks that support medium-term stability.

The Minister also used the platform to engage investors on Ghana’s private sector investment opportunities, noting that the government’s policy reforms are designed to attract sustainable capital inflows into infrastructure, energy, manufacturing, and agribusiness.

Dr. Forson expressed optimism that Ghana’s renewed fiscal discipline, coupled with a stable exchange rate and improved investor confidence, will accelerate the country’s transformation agenda and restore Ghana’s status as one of Africa’s most attractive investment destinations.

Observers at the meetings say Ghana’s approach is well-timed but faces headwinds. The IMF has warned about risks when African governments rely heavily on domestic borrowing a theme that Ghana’s delegation addressed by stressing renewed access to international markets and improved debt management capacity.

Delegates argued that a coordinated pipeline of bankable projects, backed by multilateral guarantees and anchored in strong governance, is the most viable route to draw long-term foreign capital without crowding out domestic credit.

Private investors attending side events described the Ghana pitch as credible noting clarity on policy direction and willingness to use blended instruments but said they will be watching for concrete guarantees on currency risk, contract certainty, and the speed of procurement reforms.

Development finance institutions, meanwhile, signaled openness to deepen engagement but emphasized the need for measurable progress on fiscal consolidation, debt transparency and financial sector reforms before scaling up cheaper, long-tenor financing.

For Accra, the Annual Meetings were more than a charm offensive: they were a market test. By parading a united finance team, showcasing recent reserve gains and pitching a slate of bankable projects, Ghana is trying to convert hard-won macro stability into investment and concessional support that can anchor medium-term growth.

Whether creditors and private investors respond with the scale and patience Ghana seeks will depend on follow-through at home fast implementation of reforms, clearer risk-mitigation instruments, and sustained engagement with multilateral partners.

By Toma Imirhe & Adnan Adams Mohammed

October 18, 2025
ECOWAS and the WORLD BANK strengthen their cooperation and working relationship

As part of his engagements on the margins of the World Bank/IMF Annual Meetings in Washington DC, the President of the ECOWAS Commission, H.E. Dr. Omar Alieu TOURAY was on Tuesday 14th October 2025 received by Mr Ousmane Diagana, World Bank Regional Vice President for Western and Central Africa.

The two leaders reviewed the World Bank-ECOWAS cooperation programme and also exchanged on the recent developments in the region, including regional integration, peace and security, and governance.

On the cooperation programme, the two leaders reviewed the progress made in the implementation of the various programmes and projects, as well as the challenges encountered and measures to address them in order to enhance the portfolio.

They concurred on the need to convene a deep-dive review of the portfolio and pipeline of projects during the first quarter of 2026.

October 15, 2025
Cancellation of Africa’s external debt – Dr. Atuahene mounts opposition

Some market analysts are cautioning against growing calls for the wholesale cancellation of Africa’s external debts, describing the proposal as economically unsustainable.

Banking Consultant, Dr. Richmond Atuahene, argues that Africa’s persistent debt crisis stems more from weak capital investment and poor fiscal discipline than from the debt stock itself.

He insists that a blanket write-off will do little to address the structural deficiencies undermining growth on the continent.

“Let me put it bluntly: we (Africans) borrow and consume as against capital investment which will pay itself back. So, I disagree with that social mentality that those debts should be cancelled,” he asserted.

His comments follow the August 29, 2025, rally in Accra, where the African Regional Organization of the International Trade Union Confederation (ITUC-Africa), in partnership with the Trades Union Congress (TUC-Ghana), pressed for debt cancellation, branding it an act of reparative justice.

Overall Africa’s external debt has surpassed US$1.3 trillion at the end of 2024 with average national debt-to-GDP ratio risen above 60%, with countries like Ghana and Zambia forced into restructuring.

Dr. Atuahene maintains that the continent’s priority should be strengthening fiscal discipline, boosting revenue mobilization, and aligning debt with productive investment to avoid recurrent crises.

Ghana remains the fifth most-indebted African country to the International Monetary Fund (IMF) as of August 2025, with outstanding credit estimated at SDR 2.70 billion, unchanged from July.

Latest IMF data show Egypt topping the continent’s debtor list at SDR 7.18 billion, though marginally lower than the previous month. Côte d’Ivoire and Kenya followed in second and third place with exposures of SDR 3.10 billion and SDR 3.02 billion, respectively.

September 8, 2025
lMF Boosts Ghana’s Economy with $367m Disbursement to Bank of Ghana

Story by Lawrence Odoom/Phalonzy

The International Monetary Fund (IMF) has officially disbursed $367 million to the Bank of Ghana, marking a paramount milestone in the country’s economic reform journey.

The funds, credited to the central bank’s account on July 9, represent the fifth tranche of the $3 billion IMF programme approved in 2023 under the Extended Credit Facility arrangement.

This latest disbursement is set to bolster Ghana’s external buffers, stabilize the local currency, and facilitate the government’s efforts to meet critical balance-of-payment obligations.

According to Dr. Cassiel Ato Forson, the Finance Minister, Ghana has exceeded expectations under the IMF programme, thereby restoring both local and international confidence in the economy.

The IMF programme, initiated in May 2023, aims to restore macroeconomic stability and debt sustainability after a period of economic turbulence characterized by high inflation, currency depreciation, and unsustainable debt levels. The programme’s success hinges on periodic reviews that assess Ghana’s progress on fiscal, structural, and financial reforms.

As Ghana continues to steer debt restructuring negotiations with external creditors and Eurobond holders under the G20 Common Framework, the latest disbursement is expected to support budget operations and further stabilize the cedi. Economists have emphasized the importance of channeling the funds into critical sectors such as agriculture to drive growth and ensure long-term sustainability.

“I think if I were to suggest, I would say we should use it to support the agricultural sector in the meantime and perhaps some of the road projects that have stalled. The stalling of those road projects tends to increase costs, and we’ve seen that agriculture is the fulcrum. It’s a very important aspect. Now that the government has launched the 24-hour economy, I think agriculture should be at the heart of it,” Professor Patrick Asuming opined.

The IMF’s support is expected to play a crucial role in Ghana’s efforts to rebuild macroeconomic resilience and return to a growth trajectory. As the country continues to implement key reforms, the latest disbursement is a welcome boost to its economic stabilization efforts.

July 10, 2025