Finance Minister Dr. Mohammed Amin Adam has disclosed that the IMF Board is scheduled to meet on December 2, 2024, to discuss Ghana’s Third Programme Review.
This review could result in the release of $360 million to the Bank of Ghana to support the Government’s budget and balance of payment needs.
The anticipated board meeting follows a staff-level agreement reached with the government earlier this month, after the IMF’s visit to review data up to June 2024.
“This disbursement by the IMF Board will bring the total funds received since Ghana signed up for the IMF programme to $1.92 billion,” Dr. Amin Adam noted.
Dr. Amin Adam announced this at a press briefing in Washington, DC, during the Annual IMF/World Bank Meetings.
He stated that Ghana has met all requirements for approvals and disbursements under the IMF programme.
Impact on the Economy
The Finance Minister expressed optimism that the anticipated $360 million from the IMF and an additional $300 million from the World Bank would strengthen Ghana’s reserves, helping stabilise the Ghanaian cedi going into the next year.
“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.
Investor Confidence and Economic Recovery
Dr Amin Adam also revealed that investor meetings held in Washington, DC, during the IMF/World Bank meetings indicated a positive response from investors, who are encouraged by Ghana’s economic reforms.
“Some investors are considering re-entering the domestic bond market, but we are still reviewing those requests,” he noted.
Addressing concerns about the government’s economic management over the past four years, the Finance Minister asserted, “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.”
IMF’s Growth Outlook on Ghana
The Finance Minister welcomed the IMF’s revised growth projection for Ghana, adjusting the target for 2024 from 3 per cent to 4 per cent.
“We appreciate the IMF’s explanation that their latest World Economic Outlook was based on data as of mid-April 2024, and they expect improvements by the end of the year,” he remarked.
Dr Amin Adam was confident, saying, “We believe Ghana will outperform the revised 4 per cent target based on recent investments that are starting to yield results.”
He added, however, that the government would maintain the original 3 per cent growth projection in the 2024 Budget for now.