Speaking in an interview with Bloomberg’s Jennifer Zabasajja on the sidelines of the Munich Security Conference taking place in Germany, President Mahama underscored the government’s commitment to the IMF program, which commenced in May 2023 and is set to conclude in 2026.
The IMF agreement aims to stabilize Ghana’s economy through fiscal consolidation, structural reforms, and enhanced revenue mobilization.
When asked if Ghana will seek to request additional funds, President Mahama said, “Well, it’s not off the table. It’s a journey we just started, and we are having good discussions. If it’s necessary to look at additional funds or extend the program, we will consider that. But for now, we are determined to continue with this program,” President Mahama stated.
Under the terms of the IMF arrangement, Ghana must achieve a primary surplus of 1.5% of its gross domestic product (GDP) by the end of 2025.
This fiscal target limits the government’s ability to increase public investment in infrastructure and social services, even as the country seeks to address developmental challenges.
The bailout program was initially sought to restore macroeconomic stability after Ghana faced severe fiscal and external imbalances, exacerbated by the COVID-19 pandemic, declining commodity prices, and global economic headwinds.
However, the IMF’s financial support to Ghana has been accompanied by stringent reforms, including measures to enhance domestic revenue collection, streamline public expenditures, and address rising debt levels.
Looking ahead, President John Mahama emphasized the importance of balancing fiscal prudence with developmental needs.
“We are determined to continue with this program, and I think it means that we must be more prudent in our handling of finances while looking at the expenditure side to identify and cut waste. We also need to shift resources toward more priority initiatives, so it’s a whole basket of considerations we are looking at.
“We also have the issue of debt restructuring and the humps that have been created. This year [2025], we have to pay in excess of GH¢15 billion on the domestic debt exchange. What we have done is to reactivate the sinking fund and allocate more resources to it to manage the repayments due this year,” President Mahama explained.
Meanwhile, the IMF is scheduled to conduct periodic reviews to assess Ghana’s progress under the program as positive performance could unlock further disbursements.
Watch President’s Mahama interview with Bloomberg below:
Source: www.ghanaweb.com
