Adnan Adams Mohammed
The International Monetary Fund (IMF) and Ghana’s economic team have begun the fourth review of the Extended Credit Facility (ECF) programme to Ghana.
Much is expected from this review as it is the first of a new political administration which has shown much will to commit to fiscal discipline while improving living standards of the citizenry.
To this, an economist and lecturer at University of Ghana Business School believes Ghana is likely to obtain waivers on some of its performance targets, suggesting that the IMF will likely accommodate some of the missed targets as the President Mahama administration is new.
“We definitely would miss some targets. No question about that”, Professor Patrick Asuming pointed. “The period for this ends 31st December (2024). We missed some of the performance criteria. We definitely missed the inflation target. We probably missed some of the fiscal targets, in particular the deficit target.
“I think we also missed a couple of structural targets. But I think as a new government, probably the IMF will be willing to cut them some slack.
Prof Asuming emphasized that the current government has demonstrated commitment to fiscal discipline, therefore, securing waivers would provide some flexibility in meeting program targets, particularly in the face of economic challenges.
“The government seems aggressive in trying to implement its fiscal programmes. I have seen that they have passed the Public Financial Management Act,” he said.
Meanwhile, Prof Asuming has also urged the government to maintain transparency in its negotiations on Value Added Tax reforms.
“We don’t want a situation where they go and agree something with the IMF when the Ghanaian academia as well as the business community is not fully informed,” he added.
The ongoing review is a critical step in Ghana’s engagement with the IMF, as the country seeks to stay on track with its economic recovery program.
The two-week mission, which runs from April 2 to April 15, will assess Ghana’s economic performance and progress on structural reforms under the IMF-backed programme.
The review began with discussions at the Ministry of Finance and the Bank of Ghana, focusing on the country’s fiscal performance for 2024.
Over the next two weeks, the IMF delegation will engage with senior government officials, the central bank, and other stakeholders to evaluate key economic indicators, including inflation control, monetary policy, and structural reforms.
The mission will also assess Ghana’s progress in meeting IMF targets related to fiscal discipline, economic stabilization, and debt restructuring.
The outcome will also determine whether Ghana qualifies for the next tranche of financial support from the IMF, which is crucial for maintaining macroeconomic stability.
Finance Minister, Dr. Cassiel Ato Forson emphasized the government’s commitment to economic reforms, citing the passage of transformative tax amendment bills, public procurement reforms, and policies in the 2025 Budget.
He expressed confidence that with positive macroeconomic trends, Ghana’s economy could stabilize by May 2025, and stressed the importance of concluding the review on schedule. The final statement from the IMF is expected on April 15.
