4th IMF review has collapsed NDC’s false allegation that the economy was in tatters – Sammi Awuku

Member of Parliament for Akuapim North, Sammi Awuku, has said that the aftermath of the 4th review meeting between the International Monetary Fund (IMF) and the government of Ghana has put to rest the claim by the governing National Democratic Congress (NDC ) that they inherited an economy that was in tatters.

Sammi Awuku noted that the NDC had  claimed the IMF programme had been breached. However, he said, the numbers are telling a different story and it is not one the NDC wants to hear.

“According to the IMF report, Ghana’s economy grew by 5.7% in 2024, far above the projected 4%. That’s not just recovery,that’s resilience. The mining and construction sectors surged, gold exports boomed, and remittances strengthened our external position. Today, our international reserves sit at a remarkable $8.9 billion, the highest in recent years.

“The Staff Level Agreement reached after the 4th review of the IMF programme is the result of tough strategic decisions made under the NPP’s watch.

“So while others spin tales of crisis and mismanagement, the facts keep pointing back to one truth: the NPP laid the groundwork for Ghana’s comeback and the NPP will surely comeback better in 2028!” he wrote on his Facebook page.

The Government of Ghana and the International Monetary Fund (IMF) have reached a staff-level agreement on the programme with Ghana on the fourth review.

The agreement is subject to the approval of the Board of the Fund.

An IMF staff team, led by Mr. Stéphane Roudet, Mission Chief for Ghana, held meetings in Accra from April 2 to April 15, 2025, to discuss progress on the authorities’ policy and reform priorities in the context of the fourth review of Ghana’s three-year program under the Extended Credit Facility.

The arrangement was approved by the IMF Executive Board for a total amount of SDR 2.242 billion (about US$ 3 billion) on May 17, 2023.

At the end of the mission, Mr. Roudet issued said “IMF staff and the Ghanaian authorities have reached a staff-level agreement  on the fourth review of Ghana’s economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to Executive Board consideration. Upon completion of the Executive Board review, Ghana would have access to SDR 267.5 million (about US$370 million), bringing the total IMF financial support disbursed under the arrangement, since May 2023, to SDR 1,708 million (about US$2,355 million).

“Growth in 2024 was higher than expected, underpinned by strong mining and construction activity. The external sector has seen a considerable improvement, driven by solid exports—particularly gold and to a lesser extent oil—and higher remittances. As a result, international reserves accumulation has far exceeded the ECF-supported program targets.

“Notwithstanding these achievements, overall performance under the IMF-supported program deteriorated markedly at end-2024. Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables. Inflation exceeded program targets. Several reforms and policy actions were delayed across the fiscal, financial, and energy sectors.

“Against this backdrop, the new authorities have taken bold measures to address policy slippages and ensure the program objectives remain within reach. On the fiscal front, the government has launched an audit of the payables to firm up the size and nature of the slippages. Based on preliminary estimates of new payables, the primary balance posted a deficit of some 3¼ percent of GDP (compared to a targeted surplus of ½ percent of GDP). To address these slippages, the authorities have enacted a 2025 budget that targets a 1½ percent of GDP primary surplus and adopted several public financial management reforms. The latter includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.

“Discussions with the authorities centered on possible additional measures needed to address structural weaknesses in the public financial management and procurement systems as well as steps to ensure fiscal execution remains consistent with program objectives. Engagement with the authorities also focused on measures aimed at strengthening key social protection programs to cushion the most vulnerable from the impact of high inflation and ongoing policy adjustment.

“The Bank of Ghana has recently increased its policy rate and is reviewing its liquidity management operations. The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.

“The mission also engaged the authorities on their wide-ranging structural reform program, with a focus on enhancing governance and transparency and strengthening State-Owned Enterprises management in the gold, cocoa, and energy sector. On the latter, the resumption of quarterly electricity tariff adjustments, combined with structural reforms, will help reduce the energy sector shortfall and stop the accumulation of new arrears. Financial stability is being maintained as recapitalization progresses and the authorities are committed to strengthening public banks.

“Ghana remains committed to completing its comprehensive public debt restructuring to restore sustainability. The Memorandum of Understanding (MoU) with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework has been signed by all parties, and the focus is now on finalizing the bilateral agreements to implement the MoU. The authorities are also pursuing good-faith efforts in reaching an agreement with other commercial creditors on a debt treatment that is in line with program parameters and the comparability of treatment principles.”

IMF staff met with Finance Minister Forson, Bank of Ghana Governor Asiama, and their teams, as well as representatives from various government agencies, and other stakeholders.

“The IMF team would like to express its gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement, the statement said.

Source: 3news.com