Ghana Secures IMF Fourth Review Deal

Ghana has successfully concluded an IMF Agreement under the Fourth Review of its ongoing economic program with the International Monetary Fund (IMF).

This marks a pivotal moment in the country’s journey to restore macroeconomic stability and rebuild its financial credibility.

This outcome was officially confirmed by the Minister of Finance, Hon. Cassiel Ato Forson, on April 15, 2025, following two weeks of intense negotiations with the IMF mission team.

“Ladies and Gentlemen, it has been two (2) weeks of hard work and commitment. What initially seemed like the most difficult review of the program has ended successfully, with the IMF and the Government of Ghana reaching a Staff-Level Agreement (SLA) on the 4th Review today, [15th April 2025].”

According to the Finance Minister, this milestone is a significant stride in Ghana’s economic reset agenda. It aims not just to correct fiscal imbalances but also to promote inclusive growth, create jobs, and protect the most vulnerable amid persistent economic pressures.

“We remain fully committed to the implementation of the program and will do all it takes to ensure that its objectives remain on track despite the challenges faced in implementation.”

IMF agreement

He revealed that while Ghana breached several structural benchmarks and quantitative targets by the time the new government assumed office, the economic team has since taken aggressive steps to reverse course.

These include implementing critical reforms ahead of schedule and addressing the financial mess inherited from the previous administration.

Among the key interventions, Hon. Forson cited efforts to control the large build-up of payables in 2024, which had ballooned into a primary deficit rather than the programmed surplus.

The response included commissioning the Auditor-General and two international firms to audit payables and commitments.

“This audit is expected to be completed within eight weeks,” the Minister said, noting it will help validate the legitimacy of the liabilities and inform corrective action.

New Momentum

The Finance Minister also detailed institutional reforms that are being enforced to guarantee fiscal discipline and transparency.

One major reform includes an amendment to the Public Financial Management (PFM) Act to introduce a debt rule that targets a debt-to-GDP ratio of 45% by 2035.

This will be supported by a minimum annual primary surplus of 1.5% of GDP, as well as the creation of an independent fiscal council to oversee compliance.

Additionally, the Ministry of Finance has operationalized a Compliance Desk to monitor Ministries, Departments, and Agencies (MDAs) under the PFM framework.

“We will soon begin publishing a PFM Commitment Control Compliance League Table, ranking MDAs based on their level of compliance and non-compliance.”

On structural reforms, Hon. Forson reported that 549 spending units from MDAs and MMDAs have been migrated into the Government Integrated Financial Management Information System (GIFMIS).

Meanwhile, the Public Utilities Regulatory Commission (PURC) has published audit validation reports of the ECG’s revenue accounts earlier than required.

“The implementation of the recently announced quarterly tariff adjustments by PURC was executed to satisfy the Structural Benchmark conditionality under the program,”

Forson noted, further emphasizing the government’s dedication to surpassing IMF expectations.

However, challenges remain—especially in the energy sector, which continues to pose significant fiscal risks.

Forson noted that the government has taken bold steps to stabilize this area through mechanisms such as the single account and the Cash Waterfall Mechanism, aimed at ensuring reliable payments to Independent Power Producers (IPPs).

“I must acknowledge that fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall.”

Looking ahead, the Finance Minister gave assurances that he will personally oversee the implementation of Ghana’s commitments under the Fund-supported program.

He asserted that the successful completion of this Fourth Review would unlock the disbursement of the fifth tranche of $370 million, pushing total IMF support to $2.3 billion.