Accra, Ghana – May 15, 2024 – The International Monetary Fund (IMF) has called on Ghana to strategically utilize the significant fiscal space achieved through its economic reforms and stabilisation programme to drive growth and create jobs. This directive follows the conclusion of Ghana’s three-year US$3 billion loan-supported Extended Credit Facility (ECF) arrangement and the announcement of a new 36-month Policy Coordination Instrument.
Economic Turnaround and New Financial Framework
IMF Chief Mission for Ghana, Ruben Atoyan, highlighted Ghana’s “remarkable” fiscal and economic turnaround during a joint briefing with the Ministry of Finance in Accra. The briefing also marked the conclusion of the country’s 2026 Article IV Consultation.
Mr. Atoyan, who also serves as a Division Chief in the IMF’s African Department, stated that the country is now positioned to leverage the successes of its reform efforts to accelerate economic expansion and boost employment.
“The fiscal space is ultimately the space the Government generated through strong policies and can now be used to support economic growth, employment, and strategic investment in key sectors. This was much of our discussion,” Atoyan explained.
Transitioning from Stabilisation to Growth: Key Risks Identified
As Ghana transitions from a phase of economic stabilisation to one focused on growth, the IMF has identified two primary risks that require careful management. These include maintaining robust fiscal safeguards and mitigating exposure to gold price volatility.
To ensure fiscal discipline, the IMF recommended implementing tighter expenditure controls, particularly within state-owned enterprises (SOEs). Strategies suggested include leveraging public-private partnerships and strictly adhering to the central government’s budget framework to prevent off-budget spending.
Regarding commodity price fluctuations, Atoyan cautioned that global commodity prices, especially gold, are inherently unpredictable amidst current geopolitical uncertainties. He urged Ghanaian authorities to capitalize on favorable terms of trade to build adequate financial buffers.
Ghana’s Post-ECF Priorities: Stability, Resilience, Development
Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, outlined the nation’s strategic focus for the period following the ECF program. The government’s agenda centers on three interconnected pillars: stability, resilience, and development.
“Stability will build resilience, and then we will use that resilience to develop. Clearly, stability has been achieved — we’ve announced it, and it has been confirmed by the Fund. It is now time for us to develop and create jobs,” Dr. Forson stated.
He announced that a flagship development strategy, dubbed the ‘new economy,’ will be unveiled shortly. This initiative will concentrate on critical areas for development and job creation, aiming to translate economic stability into tangible benefits for the populace.
“Be assured that from stability, we will build resilience, and from resilience, we will build an economy that benefits the masses,” the Finance Minister affirmed.
Future Outlook and Policy Coordination
The transition to the Policy Coordination Instrument signifies a new phase in Ghana’s economic management. While the ECF provided substantial financial support and policy guidance for stabilization, the PCI is designed to support the authorities’ economic programme and help maintain policy discipline and momentum during the growth phase.
This new framework is expected to help Ghana solidify its macroeconomic gains and implement policies that foster sustainable and inclusive growth. The emphasis on strategic investments and job creation suggests a shift towards structural reforms that enhance productivity and competitiveness in key sectors.
The success of Ghana’s strategy will likely depend on the effective implementation of fiscal controls, prudent management of external economic shocks, and the successful execution of the ‘new economy’ development plan. Continued close collaboration with international financial institutions like the IMF will be crucial in navigating the path ahead.
Moving forward, the focus will be on how effectively Ghana can translate its hard-won macroeconomic stability into tangible economic growth and widespread job opportunities for its citizens, while carefully managing identified risks.
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