Updates on Ghana's IMF programme
Updates on Ghana's IMF programme
In an update on Ghana’s IMF programme and Growth Agenda, the Minister of Finance, Ken Ofori-Atta shared that the government is expected to receive an influx of about $6.2 billion from its multilateral partners over the next three years.
The finance minister also highlighted the government’s post-Covid-19 Programme for Economic Growth (PC-PEG) which is backed by the IMF and comprises all the required reforms to ensure economic growth as one of the government’s efforts to restore macroeconomic stability and debt sustainability and to support inclusive growth while supporting the vulnerable.
In total, an estimate of $2.0 billion will be provided by Ghana’s multilateral partners by the end of 2023 and $6.2 billion between 2023 and 2026.[1] The government expects to receive a total support of USD 1.6 billion from the World Bank while the AfDB provides a total support of USD 200 million over the programme period.[2]
The government intends to mobilize catalytic funding of $30 million in 2023 and an additional $330 million between 2023 and 2026 from bilateral creditors, the government is also collaborating with AfDB and the World Bank to finance the Ghana Financial Stability Fund to provide liquidity and solvency support for the financial sector because of the assessed impact of the domestic debt exchange programme.[3]
With plans to invest these funds to promote macroeconomic stability and shared economic growth, the government has outlined some specific interventions to accelerate the economic recovery process and these interventions include:
- Improving the business environment, reducing the cost of doing business and enhancing export competitiveness. In addition, local content legislations will be reviewed to encourage foreign direct investment while leveraging the opportunities offered by the African Continental Free Trade Area (AfCFTA);
- Promoting entrepreneurship through initiatives such as the YouStart Programme with the Banking Sector and Faith Based Organizations;
- Fast tracking the implementation of key growth-oriented programmes under the Ghana CARES (Obaatan Pa) Program. These programmes include the Economic Enclave Projects to enable self sufficiency in rice, maize, vegetables, poultry, and supporting large-scale agriculture and agribusiness interventions through the Development Bank of Ghana;
- Transitioning to a digital economy to a digital economy to boost productivity, tax collection and formality. Expanding digital government services and promoting the BOG’s digital currency will support digitalization and financial inclusion with adequate safeguards and
- Strengthening policies to support climate change adaptation and mitigation for inclusive growth.[4]