IMF programme and robust fiscal–financial organization using Ghana’s steadiness — Prof. Peter Quartey – Life Pulse Daily

Introduction

Recent commentary by Prof Peter Quartey, a prominent Ghanaian economist and former Director of the Institute of Statistical, Social and Economic Research (ISSER), has reignited public discussion on the drivers of Ghana’s current financial steadiness. Speaking at the PleasureNews Business Economic Forum, Prof Quartey emphasized that the country’s macro‑economic stability is the product of a coordinated IMF programme and a robust fiscal–financial organization across government institutions. This article unpacks his remarks, places them in the wider context of Ghana’s economic reforms, and offers practical takeaways for policymakers, investors, and the general public.

Key Points

Background

Understanding the substance of Prof Quartey’s remarks requires a brief look at Ghana’s recent economic trajectory and the role of the International Monetary Fund.

Ghana’s Economic Landscape

Over the past decade, Ghana has faced recurring fiscal deficits, high public debt, and exchange‑rate volatility. The country’s debt‑to‑GDP ratio peaked above 70 % in 2021, prompting a search for external support to restore confidence.

The IMF Programme in Ghana

Since 2023, Ghana has been engaged in an Extended Credit Facility (ECF) arrangement with the International Monetary Fund. The programme focuses on fiscal consolidation, revenue mobilisation, and structural reforms aimed at improving the business environment. It is scheduled for review in 2025, with the possibility of renewal if performance targets are met.

Prof Peter Quartey’s Professional Profile

Prof Quartey is a distinguished economist with extensive experience in public‑sector research. He previously led ISSER, a think‑tank that provides data‑driven analysis for Ghanaian policy‑making. Currently, he heads the Legon Centre for International Affairs and Diplomacy (LECIAD), where he continues to advise on macro‑economic policy and international cooperation.

Analysis

Prof Quartey’s observations can be examined through several analytical lenses that shed light on why coordination matters and how the IMF framework interacts with Ghana’s domestic institutions.

Policy Coordination as a Pillar of Stability

When fiscal policy (government spending, taxation, and borrowing) and monetary policy (interest rates, open‑market operations, and currency management) operate in isolation, the risk of policy conflict rises. Misaligned objectives can lead to inflationary pressures, currency depreciation, or credit rating downgrades. Prof Quartey’s warning — “if the minister of finance and the Bank of Ghana do not speak the same language, it’s a recipe for disaster” — captures this risk succinctly. Empirical studies on emerging markets consistently show that countries with formal coordination mechanisms experience lower inflation volatility and more predictable exchange‑rate movements.

The IMF’s Role in Institutional Strengthening

The IMF does not merely provide financial resources; it also imposes conditionalities that require reforms in fiscal management, public‑sector accounting, and monetary transparency. These conditions often push governments to adopt clearer communication channels between ministries and central banks. In Ghana’s case, the Fund‑supported reforms have encouraged the creation of joint policy frameworks, regular stakeholder meetings, and shared data platforms, all of which facilitate the “speaking the same language” dynamic that Prof Quartey praises.

Impact on Inflation and the Cedi

Since the inception of the current IMF arrangement, Ghana’s headline inflation has shown a gradual decline, falling from double‑digit levels in 2022 to single‑digit ranges by mid‑2024. Simultaneously, the Ghana cedi has appreciated modestly against major currencies, reflecting renewed investor confidence. While multiple factors contribute to these trends — such as improved cocoa prices and diaspora remittances — the alignment of fiscal and monetary policies is widely regarded as a critical enabler.

Evaluation of the “Teamwork” Narrative

Prof Quartey’s emphasis on collective effort underscores a broader truth: sustainable economic recovery is rarely the product of isolated heroics. The involvement of the Presidency, the Finance Ministry, and the Central Bank creates a multilayered governance structure that can absorb shocks and maintain policy continuity. However, the narrative also raises questions about accountability. When successes are attributed to “teamwork,” mechanisms for transparent performance measurement become essential to ensure that each institution can be held responsible for its specific mandates.

Practical Advice

The insights from Prof Quartey’s speech are not only academic; they offer actionable guidance for various stakeholders.

For Policymakers

1. Institutionalise regular coordination forums between the Ministry of Finance and the Bank of Ghana. 2. Adopt joint policy indicators that track fiscal‑monetary alignment, such as the “policy stance index.” 3. Ensure that IMF conditionality is communicated clearly to Parliament and the public to maintain political consensus.

For Investors and Business Leaders

1. Monitor the frequency and tone of official statements from both the Finance Ministry and the Central Bank as leading indicators of policy stability. 2. Diversify exposure to sectors that benefit from macro‑economic steadiness, such as agriculture processing and renewable energy. 3. Consider hedging currency risk if the cedi’s volatility remains uncertain.

For Academics and Research Institutions

1. Conduct longitudinal studies on the impact of policy coordination on Ghana’s macro‑economic variables. 2. Publish comparative analyses with other African economies that have successfully navigated IMF programmes. 3. Provide evidence‑based policy briefs that feed into the design of future IMF‑supported reforms.

FAQ

Conclusion

Prof Peter Quartey’s address at the PleasureNews Business Economic Forum underscores a vital lesson: Ghana’s recent financial steadiness is the outcome of a robust fiscal–financial organization underpinned by a continuing IMF programme and a culture of inter‑governmental collaboration. While the country still faces structural challenges, the emphasis on coordinated policy making offers a promising pathway toward lasting macro‑economic stability. Stakeholders — from government officials to private investors — can draw practical insights from this narrative to navigate the evolving economic landscape with greater confidence.

Sources

1. Quartey, P. (2025, December 18). IMF Programme and Robust Fiscal–Financial Organization Using Ghana’s Steadiness. Life Pulse Daily. Retrieved from https://www.lifepulsedaily.com/imf-programme-ghana

2. International Monetary Fund. (2024). Ghana: Extended Credit Facility Arrangement – Progress Report. Retrieved from https://www.imf.org/en/Publications/CR/Issues/2024

3. Ghana Ministry of Finance. (2025). Annual Fiscal Performance Report 2024. Retrieved from https://www.mof.gov.gh/reports/2024

4. Bank of Ghana. (2025). Monetary Policy Statement – December 2025. Retrieved from https://www.bog.gov.gh/publications/monetary-policy-dec2025

5. Institute of Statistical, Social and Economic Research (ISSER). (2023). Ghana Economic Outlook. Retrieved from https://isser.ug.edu.gh/publications/economic-outlook-2023