Finance Minister Dr. Mohammed Amin Adam has announced that the International Monetary Fund (IMF) Board will convene on December 2, 2024, to review Ghana’s Third Programme.
This review could facilitate the release of $360 million to the Bank of Ghana, aimed at addressing the government’s budgetary and balance of payment needs.
The upcoming board meeting follows a staff-level agreement reached with the government earlier this month, coinciding with the IMF’s visit to assess data through June 2024. Dr. Amin Adam stated, “This disbursement by the IMF Board will bring the total funds received since Ghana signed up for the IMF programme to $1.92 billion”.
He shared this information at a press briefing in Washington, DC, during the Annual IMF/World Bank Meetings, emphasizing that Ghana has fulfilled all prerequisites for approvals and disbursements under the IMF programme.
Economic Implications
Dr. Amin Adam expressed optimism regarding the forthcoming $360 million from the IMF, alongside an additional $300 million from the World Bank, which he believes will bolster Ghana’s reserves and help stabilize the Ghanaian cedi heading into the new year. He reassured businesses, stating, “The Bank of Ghana already maintains strong reserves, and these additional funds will position the Central Bank well to stabilize the cedi. There’s no need for businesses to worry about foreign exchange availability.”
He further emphasized that the significance lies not just in the funds from the IMF but also in the positive signal it conveys to investors about the government’s efforts to stabilize the economy.
The Finance Minister also highlighted the encouraging feedback from investor meetings in Washington, where participants expressed interest in Ghana’s economic reforms.
“We must remember that the Bank of Ghana already has strong reserves, and these additional inflows will put the Central Bank in a solid position to stabilize the Ghana cedi,” Dr Amin Adam added.
“There is no need for businesses to panic regarding the availability of foreign exchange to meet their demands.”
“For us, it’s not just about the funds coming from the IMF, but rather the signal it sends to investors that the government has taken the necessary steps to stabilize the economy,” the Minister explained.
Addressing concerns regarding the government’s economic management over the past four years, Dr. Amin Adam declared, “Ghana’s economy has strongly recovered compared to two years ago. We’ve seen tremendous progress in growth, exchange rate stability, and inflation.”
He added, “We have performed exceptionally well in managing the economy.”
Dr. Amin Adam welcomed the IMF’s updated growth forecast for Ghana, which has been adjusted from 3 percent to 4 percent for 2024.
He acknowledged that the IMF’s latest World Economic Outlook, based on data from mid-April 2024, anticipates improvements by year-end.
“We believe Ghana will exceed the revised 4 percent target due to recent investments starting to yield results,” he asserted, although he mentioned that the government will retain the original 3 percent growth projection in the 2024 Budget for the time being.