IMF Team to Visit Ghana for Crucial Economic Discussions
An International Monetary Fund (IMF) team is set to arrive in Accra, Ghana, this weekend, February 8, 2025, for critical discussions with the government.
The engagement will focus on Ghana’s economy and the upcoming 2025 Budget, which is expected to be presented to Parliament in March 2025.
Key Issues on the Agenda
During the five-day visit, discussions will cover:
- Progress on External Commercial Creditors Negotiations: Assessing the government’s efforts in restructuring external debts.
- Energy Sector Debts: Evaluating steps taken to resolve challenges in the energy sector.
- Electricity Sector Privatization: Seeking clarity on potential privatization plans for parts of the Electricity Company of Ghana’s (ECG) operations.
Not a Review Mission
According to sources at JOYBUSINESS, this visit is not a formal Review Mission but an engagement primarily centered on the economy and the 2025 Budget. The IMF’s fourth review of Ghana’s economic programme is scheduled for later in 2025, based on fiscal data up to December 2024.
If Ghana successfully meets the IMF’s benchmarks, another tranche of funding is expected to be disbursed to the Bank of Ghana by June 2025.
IMF’s Focus on the 2025 Budget
The IMF will ensure that the 2025 Budget aligns with Ghana’s economic programme, particularly efforts to boost revenue generation and maintain debt sustainability.
A key concern will be the government’s plan to address revenue shortfalls if Finance Minister Dr. Ato Forson proceeds with the proposed removal of taxes such as the Betting Tax, Covid-19 Levy, and E-Levy. Analysts estimate that scrapping these taxes could cost Ghana approximately 10 billion cedis annually.
Additionally, discussions will explore strategies for economic restructuring and their potential impact on the IMF-supported programme.
Programme Extension & Additional Funding
Dr. Forson has recently hinted at plans to extend Ghana’s IMF programme to secure additional funds for economic stabilization. The visit provides an opportunity for both parties to finalize discussions on this proposal.
While the IMF is open to reviewing the programme, any extension or modifications must align with its broader objectives for Ghana’s economic recovery.
Ghana’s IMF Programme Progress
Since Ghana joined the IMF programme in May 2023, the country has received $1.9 billion in financial support.
Following Ghana’s third successful review, the IMF described the programme’s progress as generally satisfactory, highlighting:
- Stronger-than-expected economic growth in the first half of 2024.
- Declining inflation trends.
- Improved fiscal and external positions.
As Ghana prepares for this crucial IMF visit, the government’s ability to meet fiscal targets and implement necessary reforms will determine future funding and programme sustainability.
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