A delegation from the International Monetary Fund (IMF) has arrived in Accra, Ghana for crucial discussions with government officials.
The week-long visit will focus on the state of the economy and preparations for the 2025 Budget, which is anticipated to be presented in Parliament in March.
The IMF team is expected to assess the government’s progress on negotiations with external commercial creditors and strategies for managing the country’s energy sector debts.
Additionally, the delegation will seek clarification on the government’s approach to tackling the nation’s energy challenges, including talks about potentially privatizing parts of the Electricity Company of Ghana’s (ECG) operations.
According to sources, this visit is not part of the formal review mission but will centre on preliminary engagements about the economy and the 2025 Budget.
The IMF is scheduled to conduct the fourth review of Ghana’s programme later this year, based on fiscal data up to December 2024. If the country passes the assessment, it could receive another cash tranche from the IMF by June 2025.
A key aspect of the discussions will be ensuring that the 2025 Budget aligns with the IMF’s programme objectives, particularly improving revenue mobilization and reducing the national debt to sustainable levels.
Sources indicate that the IMF team will seek clarity on the government’s plan to address potential revenue gaps if Finance Minister Dr. Ato Forson proceeds with removing taxes such as the COVID-19 Levy, E-Levy and Betting Tax.
It is estimated that Ghana could lose about GH¢10 billion annually if these taxes are scrapped. The IMF delegation will also explore the government’s plans to reset the economy and their potential impact on the broader programme.
Dr. Forson recently hinted at the government’s intention to negotiate an extension of the IMF programme to secure additional funds to stabilize the economy.
The visit offers both parties an opportunity to advance discussions on this proposal. However, the IMF has emphasized that any agreement must align with the programme’s broader objectives.
Since Ghana entered the IMF programme in May 2023, it has received approximately US$1.9 billion in financial support.
After Ghana passed the third review, the IMF commended the country’s performance, describing it as “generally satisfactory” with significant progress in debt restructuring.
“Economic growth in the first half of 2024 exceeded expectations, inflation has continued to decline, and the fiscal and external positions have shown marked improvements,” IMF said in a statement.
This upcoming engagement underscores the ongoing collaboration between Ghana and the IMF to stabilize the country’s economy and ensure sustainable growth.
