Ghana is entering its second review of the three-year, $3 billion IMF-supported Program for Economic Growth (PC-PEG), which was established to address challenges arising from the COVID-19 pandemic.
The review begins on April 2, 2024, following a successful initial assessment in January. IMF mission staff arrived over the weekend to evaluate Ghana’s progress over the next two weeks.
This review is crucial for assessing policy effectiveness and ensuring alignment with program objectives. Key areas of focus include fiscal discipline, monetary policy effectiveness, structural reforms, and sustainable economic growth.
The outcome will influence investor confidence and international support for Ghana’s development agenda. The successful implementation of the program is essential for Ghana’s post-pandemic recovery and economic resilience.
During this period, Ghana’s adherence to the prescribed programme objectives will be scrutinized closely, with a focus on areas such as economic recovery, fiscal management, and structural reforms.
The results of this review will carry substantial weight for Ghana’s economic path and its interactions with international financial institutions.
The government has conveyed optimism regarding the successful completion of this IMF program review, anticipating meeting all structural targets.
This achievement is expected to pave the way for unlocking the third tranche of IMF funds amounting to $360 million by the conclusion of June.
This round of assessment by the IMF will be the second programme review after the bailout was finalized but the first of the two reviews expected this year.
The next review for 2024 is scheduled for November.
The IMF team will assess both qualitative and quantitative targets following the disbursement of the second tranche of funds to Ghana for budgetary support.
This evaluation comes amidst the government’s ongoing efforts to negotiate with bilateral and commercial creditors for the restructuring of external debts, a process that has presented its own set of challenges.
Despite these challenges, the government has made significant headway in negotiations and remains optimistic about securing the third tranche of $360 million. This would bring total disbursements to approximately $1.56 billion thus far.
During their visit, the IMF mission staff will engage with various stakeholders, including the President, government officials, representatives from the Central Bank, and civil society organizations.
Finance Minister Dr. Mohammed Amin Adam and Bank of Ghana Governor Dr. Ernest Addison have both affirmed the government’s commitment to staying the course and meeting the program’s objectives.
The IMF mission is scheduled to conclude on Friday, April 12, 2024. Following their assessment, they will return to Washington DC with their status report, which will then be subject to approval by the IMF Board.
STORY BY ; PORTIA AKU SHIKA GAFAH
