The IMF Board is set to convene on December 2 to deliberate Ghana’s Third Programme Review, a meeting that could trigger a critical $360 million disbursement to shore up the country’s fiscal framework and balance of payments.
Following a staff-level agreement reached earlier this month, this infusion would bring Ghana’s cumulative IMF funding under the program to $1.92 billion.
Speaking at a press briefing in Washington during the IMF/World Bank Annual Meetings, Finance Minister Dr. Mohammed Amin Adam underscored that the anticipated IMF tranche, alongside an additional $300 million from the World Bank, will augment the Bank of Ghana’s reserves, supporting the cedi and reducing currency volatility as the nation heads into 2025.
He assured market participants of the central bank’s fortified reserve position, emphasizing the bolstered liquidity to meet forex demand.
“This isn’t just about the IMF funds,” Dr. Amin Adam noted, “but about the signal to investors that Ghana is executing the necessary reforms to stabilize and grow the economy.”
Recent investor meetings in Washington, he said, highlighted growing confidence in Ghana’s economic trajectory, with some investors eyeing re-entry into the domestic bond market—a potential turnaround after a period of uncertainty.
Addressing skepticism over the government’s economic stewardship in recent years, Dr. Amin Adam highlighted key achievements, citing substantial gains in growth, exchange rate stability, and inflation.
Meanwhile, the IMF has revised its growth forecast for Ghana in 2024 to 4% from the prior 3.1%, a target the Finance Minister believes could be exceeded as recent investments begin to generate returns.
Despite this upward revision, Ghana will maintain a conservative 3% growth estimate in its official budget to balance expectations against fiscal prudence.
Source:norvanreports.com