John Dramani Mahama, President of the Republic of Ghana. [Photo by Ernest Ankomah/Getty Images]
Ghana has formally closed the chapter on emergency financial assistance from the International Monetary Fund, with Finance Minister Dr. Cassiel Ato Forson telling Parliament on Thursday that the West African country will not be returning to the global lender for a bailout — now or in the near future.
Addressing Parliament on May 28, Dr. Forson said President John Dramani Mahama believes Ghana should not need another bailout after what would become the country’s 17th programme with the Fund. “It is my hope that this will be the very last time we ever go for an IMF bailout programme,” he quoted the President as saying, before adding his own definitive position: “I repeat, no further IMF financial bailout is currently required in the foreseeable future.”
The declaration marks a significant turning point for a country that was on the brink of economic collapse just a few years ago. When Ghana entered its $3 billion Extended Credit Facility with the IMF in May 2023, it was in acute crisis — locked out of international capital markets, battling surging inflation, a depreciating cedi, and severe debt distress. “Ordinary Ghanaians bore the heaviest burden of the crisis through runaway inflation, erosion of incomes and savings, high interest rates, job losses, and increased economic insecurity,” Dr. Forson told Parliament.
“It is important to recount this not to dwell on the past, but to remind ourselves of the heavy price of fiscal indiscipline and economic recklessness, and to affirm our collective resolve that Ghana must never return to that path,” he said.
Dr. Forson disclosed that Ghana has successfully completed the final review of its current IMF-supported programme, pending approval by the IMF Executive Board. Rather than seek a fresh credit line, Ghana’s next phase of engagement with the IMF will be through a Policy Coordination Instrument — a non-financing framework designed for countries that no longer require financial assistance but seek policy guidance, regular economic reviews, and credibility with investors and development partners. “The Policy Coordination Instrument is a non-financing IMF instrument designed for countries that do not require IMF financing but seek a credible framework for reform, regular policy reviews, and a stronger signal to investors and development partners,” the minister explained.
The numbers behind the minister’s confidence are striking. Real GDP growth reached 6.0 percent in 2025, marking the strongest post-pandemic expansion, while non-oil GDP growth rose to 7.6 percent — the highest in 14 years. Ghana’s economy crossed the $100 billion threshold for the first time, placing it among Africa’s largest economies and ranking it eighth on the continent, with per capita income rising to $3,385. The primary balance recorded a surplus of 2.5 percent of GDP in 2025, while the public debt-to-GDP ratio fell sharply from 61.8 percent in 2024 to 44.7 percent — achieving the IMF’s target well ahead of schedule.
Treasury bill rates and bond yields have also fallen sharply, with the 91-day Treasury bill dropping from 28.4 percent in January 2025 to 4.8 percent by April 2026, while the monetary policy rate was reduced from 27 percent to 14 percent over the same period.
Dr. Forson attributed the recovery to deliberate fiscal reforms implemented after the current administration took office. These included the operationalisation of a Public Financial Management commitment control system to curb spending, the activation of the Sinking Fund to manage future debt obligations, and the launch of the GoldBod initiative to bolster reserve accumulation and stabilise the foreign exchange market. The government also scrapped a string of unpopular taxes — among them the E-Levy, Betting Tax, Emissions Levy, and VAT on auto insurance — and slashed the number of ministers from 123 to 60 and ministries from 30 to 23.
The fifth review of the programme in December 2025 confirmed that all quantitative performance criteria and indicative targets were met, with progress also recorded on structural benchmarks including state-owned bank reforms.
“Ghana has evolved from a position of supplicant to one of partner,” Dr. Forson declared, framing the transition as a defining milestone of President Mahama’s Reset Agenda. He described the shift as moving from crisis management to macroeconomic stability — a progression he said should instil confidence across the business and investor communities.
“These results affirm a simple but enduring truth: fiscal prudence and discipline always deliver results,” the Finance Minister told Parliament, arguing that macroeconomic stability is not an abstract goal but the foundation for jobs, incomes, investment, and long-term prosperity.
By: Andrews Kwesi Yeboah