President John Dramani Mahama has indicated the possibility of refining the country’s $3 billion bailout program with the International Monetary Fund (IMF), suggesting that additional funds remain a potential option during engagements.
Speaking in an interview with Bloomberg’s Jennifer Zabasajja on the sidelines of the Munich Security Conference taking place in Germany, President Mahama underscored the government’s commitment to the IMF program, which commenced in May 2023 and is set to conclude in 2026.
The IMF agreement aims to stabilize Ghana’s economy through fiscal consolidation, structural reforms, and enhanced revenue mobilization.
When asked if Ghana will seek to request additional funds, President Mahama said, “Well, it’s not off the table. It’s a journey we just started, and we are having good discussions. If it’s necessary to look at additional funds or extend the program, we will consider that. But for now, we are determined to continue with this program,” President Mahama stated.
Under the terms of the IMF arrangement, Ghana must achieve a primary surplus of 1.5% of its gross domestic product (GDP) by the end of 2025.
This fiscal target limits the government’s ability to increase public investment in infrastructure and social services, even as the country seeks to address developmental challenges.
The bailout program was initially sought to restore macroeconomic stability after Ghana faced severe fiscal and external imbalances, exacerbated by the COVID-19 pandemic, declining commodity prices, and global economic headwinds.
However, the IMF’s financial support to Ghana has been accompanied by stringent reforms, including measures to enhance domestic revenue collection, streamline public expenditures, and address rising debt levels.
Looking ahead, President Mahama emphasized the importance of balancing fiscal prudence with developmental needs.
“Our priority is to create fiscal space for critical investments in health, education, and infrastructure, without jeopardizing the hard-won economic gains,” he noted.
Meanwhile, the IMF is scheduled to conduct periodic reviews to assess Ghana’s progress under the program as positive performance could unlock further disbursements, while challenges may prompt discussions about potential adjustments, including the possibility of additional funding.
Watch President’s Mahama interview with Bloomberg below:
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