The International Monetary Fund (IMF) has urged Ghana to sustain its economic reforms and maintain prudent financial policies, warning that rising domestic and external risks could undermine the country’s recent economic gains.
The warning follows the Fund’s first review of Ghana’s 36-month Policy Coordination Instrument (PCI), after discussions between an IMF mission and Ghanaian authorities in Accra from October 22 to November 4, 2026.
The IMF said Ghana’s performance under the programme had been broadly satisfactory, acknowledging improvements in economic conditions while stressing the need for continued policy discipline and the completion of outstanding structural reforms.
According to the Fund, Ghana’s economy expanded by 6.2 per cent year-on-year during the first half of 2026, supported by stronger economic activity. It projected full-year growth of 5.7 per cent, with investment expected to play an important role in sustaining the expansion.
The IMF also recognised improvements in inflation and the country’s economic buffers, which have helped the economy withstand some external pressures, including the effects of geopolitical tensions and the conflict in the Middle East.
However, it cautioned that the progress should not lead to complacency, particularly as Ghana continues to face challenges involving foreign exchange reserves, public debt and vulnerabilities in key sectors of the economy.
One of the Fund’s major concerns is the need for Ghana to rebuild and strengthen its foreign exchange reserves. It urged the authorities to maintain policies aimed at improving reserve accumulation and ensuring that the country is better positioned to withstand external shocks.
Among the measures highlighted were efforts to shift foreign exchange intermediation from the Bank of Ghana to the Ghana Gold Board (GoldBod), alongside the enforcement of higher gold sale requirements for large-scale mining companies.
The IMF stressed that these measures should be accompanied by greater exchange rate flexibility and consistent implementation of policies to strengthen the country’s external position.
The Fund also acknowledged several reforms undertaken by the government, including the publication of the Fiscal Strategy Document, parliamentary approval of a new Cocoa Board Act and the continuation of quarterly electricity tariff adjustments.
It further noted that a comprehensive review of customs and excise legislation had been completed ahead of schedule.
Despite these developments, the IMF identified several outstanding reforms that require urgent attention.
These include the delayed publication of the audit of the Electricity Company of Ghana’s (ECG) collection accounts, improvements to the Bank of Ghana’s liquidity management framework and reforms to the Integrated Tax Administration System.
The Fund also called for progress towards operationalising the Fiscal Council and preparing a Fiscal Risk Statement to improve transparency and strengthen oversight of public finances.
On the external front, the IMF warned that fluctuations in international gold, cocoa and oil prices could create difficulties for Ghana’s economic management. Geopolitical tensions and tighter global financial conditions were also identified as potential threats.
Domestically, the Fund highlighted significant debt repayment and rollover requirements, weaknesses in the financial sector and fiscal pressures associated with the energy, cocoa and gold sectors.
It therefore recommended prudent monetary policies, stronger foreign exchange reserves, greater exchange rate flexibility and the establishment of a sinking fund to help the country meet future debt obligations.
The IMF also emphasised the importance of improving governance and accountability as part of Ghana’s broader economic reform agenda.
It urged the government to advance the Conduct of Public Officers Bill, publish the second National Ethics and Anti-Corruption Action Plan and strengthen oversight of state-owned enterprises.
According to the Fund, improvements in governance and transparency would help strengthen public confidence, support economic stability and encourage private-sector investment.
Although the IMF acknowledged the progress made under Ghana’s economic programme, it maintained that sustained reforms would be necessary to protect the country’s recovery and address vulnerabilities that could threaten long-term stability.
The staff-level agreement reached following the review remains subject to approval by IMF management and the Fund’s Executive Board.
The latest assessment therefore places renewed emphasis on the government’s responsibility to maintain fiscal discipline, complete outstanding reforms and strengthen the economy against both domestic pressures and developments in the global market.
Source: Thepressradio.com
