Ghana set to go out IMF programme this 12 months – Haruna Iddrisu – Life Pulse Daily

Ghana Set to Exit IMF Programme This Year – Haruna Iddrisu

Introduction

Ghana’s journey toward economic recovery and fiscal independence is taking a promising turn. Education Minister Haruna Iddrisu has announced that the country is on track to exit its International Monetary Fund (IMF) programme before the end of 2026. This development signals a potential turning point for Ghana’s economy, which has faced significant challenges in recent years, including a debt restructuring exercise that stalled key infrastructure projects. In this article, we explore the implications of this announcement, the background of Ghana’s IMF programme, and what it means for the nation’s future.

Key Points

– Ghana is preparing to exit its IMF programme by the end of 2026, according to Education Minister Haruna Iddrisu.
– The exit is expected to unlock stalled infrastructure projects, including the University of Engineering and Agricultural Sciences at Bunso.
– Outstanding payments of $28.6 million, including $9.8 million owed by the Ministry of Finance, are expected to be honored post-exit.
– President John Dramani Mahama is expected to visit South Korea later this year to secure additional financing for the university project.
– The debt exchange programme has caused long-term damage to the economy, affecting project completion timelines.

Background

Ghana’s economic challenges came to a head in 2022 when the country defaulted on its external debt, prompting it to seek assistance from the IMF. The IMF programme was designed to stabilize the economy, restore investor confidence, and create a pathway for sustainable growth. However, the programme came with strict conditions, including a debt restructuring exercise that constrained government spending and delayed payments to contractors.

One of the most affected projects was the University of Engineering and Agricultural Sciences at Bunso, which began construction in 2022 but was stalled due to the debt restructuring. The project, which was allocated $90 million by the government, has $28.6 million in outstanding payments, including $9.8 million owed by the Ministry of Finance.

Analysis

Minister Iddrisu’s announcement is a significant milestone for Ghana, as it indicates that the country is making progress toward economic stability. Exiting the IMF programme would provide the government with greater fiscal flexibility, enabling it to meet its financial obligations and accelerate stalled projects. The University of Engineering and Agricultural Sciences at Bunso is a prime example of how the debt exchange programme has impacted infrastructure development. With the IMF programme coming to an end, the government can now focus on completing such projects, which are critical for the country’s long-term growth.

The minister also highlighted the importance of securing additional financing from South Korea. President Mahama’s upcoming visit to South Korea is expected to yield concessionary financing that will further support the university project and other development initiatives. This move underscores Ghana’s commitment to diversifying its funding sources and reducing its reliance on traditional lenders.

Practical Advice

For stakeholders in Ghana’s economy, the impending exit from the IMF programme presents both opportunities and challenges. Businesses and contractors who have been affected by delayed payments should prepare for the resumption of government spending. Additionally, investors should keep an eye on Ghana’s economic indicators, as the country’s exit from the IMF programme could signal a more favorable investment climate.

For the government, it is crucial to ensure that the transition out of the IMF programme is smooth and that the lessons learned from the debt restructuring exercise are applied to future fiscal policies. Transparency and accountability will be key to maintaining public trust and attracting foreign investment.

FAQ

1. What is the IMF programme, and why did Ghana join it?
The IMF programme is a financial assistance package designed to help countries stabilize their economies. Ghana joined the programme in 2022 after defaulting on its external debt.

2. How will exiting the IMF programme benefit Ghana?
Exiting the IMF programme will provide Ghana with greater fiscal flexibility, enabling the government to meet its financial obligations and accelerate stalled projects.

3. What is the status of the University of Engineering and Agricultural Sciences at Bunso?
The project, which began in 2022, was stalled due to the debt restructuring exercise. With the IMF programme ending, the government plans to complete the project using additional financing from South Korea.

4. How much outstanding payment is owed for the Bunso project?
The government has committed $90 million to the project, with $28.6 million in outstanding payments, including $9.8 million owed by the Ministry of Finance.

5. What role will South Korea play in Ghana’s economic recovery?
South Korea is expected to provide concessionary financing to support Ghana’s development projects, including the University of Engineering and Agricultural Sciences at Bunso.

Conclusion

Ghana’s impending exit from the IMF programme marks a significant step toward economic recovery and fiscal independence. The government’s ability to meet its financial obligations and accelerate stalled projects will be critical in the coming months. As the country transitions out of the IMF programme, it must remain focused on sustainable growth, transparency, and accountability. With the right policies and partnerships, Ghana has the potential to emerge stronger and more resilient in the face of future challenges.

Sources

– Life Pulse Daily. “Ghana set to go out IMF programme this 12 months – Haruna Iddrisu.” Published on 2026-01-29 08:44:00.
– International Monetary Fund. “Ghana: Request for Extended Credit Facility.”
– Ministry of Finance, Ghana. “Debt Exchange Programme Update.”

This article is based on publicly available information and does not constitute financial or investment advice.