The International Monetary Fund (IMF) has praised Ghana’s economic recovery programme, saying the country has made major progress in stabilising the economy despite ongoing global uncertainties.

The assessment came after an IMF staff team, led by Ruben Atoyan, visited Accra from April 29 to May 15 for discussions on Ghana’s 2026 Article IV consultation, the sixth and final review of the Extended Credit Facility (ECF), and the government’s request for a new non-financing Policy Coordination Instrument (PCI).

In its concluding statement, the IMF said Ghana’s economy performed better than expected in 2025, driven by strong activity across several sectors and record-high gold export earnings.

According to the Fund, inflation has continued to decline, the country’s foreign reserves have improved, and confidence in the cedi has strengthened significantly.

The IMF also noted that Ghana’s fiscal performance improved sharply in 2025, with the country recording a stronger-than-expected primary surplus while the public debt ratio fell considerably.

“Fiscal performance has strengthened markedly, with the primary surplus overperforming the programme target in 2025, while the public debt ratio declined sharply,” the IMF stated.

The Fund added that most of the programme’s quantitative targets had been achieved, although some structural reforms were delayed.

Despite the positive outlook, the IMF warned that global risks remain high, particularly due to tensions and conflict in the Middle East, which could increase the prices of fuel, food and fertilisers and affect Ghana’s economy.

“The volatile external environment underscores the importance of preserving prudent policies and strengthening resilience,” the IMF said.

The Fund further revealed that Ghana has made significant progress in restructuring both domestic and external debt, improving the country’s overall debt outlook.

According to the IMF, Ghana has already reached bilateral debt-relief agreements with about half of its official creditors under the G20 Common Framework, while negotiations with the remaining creditors are still ongoing.

The IMF also described the successful return of domestic treasury bond issuance earlier this year as a sign that investor confidence in Ghana’s economy is gradually returning.

As part of efforts to sustain reforms after the current bailout programme ends, the IMF announced that it had reached a staff-level agreement with Ghanaian authorities on a new 36-month Policy Coordination Instrument.

The proposed programme will focus on maintaining fiscal discipline, protecting debt sustainability, strengthening transparency and governance, improving monetary and exchange-rate policies, safeguarding financial sector stability, and promoting economic diversification.

The IMF said recent improvements in Ghana’s debt position had created what it described as “carefully calibrated fiscal space” that could allow the government to increase spending on development projects, youth employment and social protection without threatening debt sustainability.

Under the proposed arrangement, the Fund indicated that reducing Ghana’s primary surplus target to 0.5% of GDP from 2027 would still remain consistent with maintaining debt sustainability if ongoing public financial management reforms continue.

However, the IMF raised concerns about the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), warning that losses linked to the initiative expose the risks associated with quasi-fiscal activities.

“The losses associated with the Domestic Gold Purchase Programme underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet,” the IMF stated.

The Fund urged authorities to shield the central bank’s balance sheet from DGPP-related risks and ensure that future programme costs are properly captured in the national budget to improve accountability and oversight.

In the banking sector, the IMF welcomed progress made in recapitalising banks and gradually removing temporary regulatory relief measures introduced during Ghana’s debt exchange programme.

However, it warned that vulnerabilities still exist, especially among state-owned banks and specialised deposit-taking institutions, while high levels of non-performing loans continue to threaten sustainable credit growth.

The IMF also called for deeper reforms in both the energy and cocoa sectors.

In the energy sector, the Fund said priority should be given to reducing losses at the Electricity Company of Ghana, clearing legacy arrears and lowering electricity generation costs. It also encouraged the government to finalise private sector participation in electricity distribution.

On cocoa sector reforms, the IMF said recent measures had provided some relief but stressed that more work is needed to secure the long-term financial sustainability of COCOBOD.

The Fund recommended more frequent adjustments to cocoa farmgate prices alongside efforts to cut costs and improve operational efficiency.

The IMF also called for stronger anti-corruption measures, including meaningful public disclosure of standardised asset declarations.

It concluded by cautioning Ghana against falling back into what it described as “cycles of fiscal imbalances, rising debt, weak buffers, and reform reversals,” stressing that sustained reforms and prudent economic management will be necessary to protect the gains achieved so far.