Ghana and IMF reach Staff Level Agreement after 3rd PC-PEG Review

Accra, Friday 4th October 2024 – Ghana has reached Staff Level Agreement (SLA) with the International Monetary Fund after the 3rd Review of the IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).

“I am happy to inform you that we have reached a staff level agreement (SLA) under the 3rd Review as a result of the remarkable performance we have made so far towards the achievement of programme objectives and targets.”

Dr Mohammed Amin Adam, Minister for Finance announced this at joint GOG-IMF press briefing at the end of the 3rd Review of the PC-PEG conducted by the IMF staff over the last two weeks. The occasion was also used to provide an update on the economy for September under the monthly economic update briefing session for the media.

The Minister said the IMF Executive Board will meet in the first week of December to 2024 to review the SLA and when approved, the country will receive US$360 million bringing the total disbursement under the programme to US$1.992 billion.

He further disclosed that Ghana met all the six (6) Quantitative Performance Criteria (QPCs) and for the first time met all four (4) Indicative Targets (ITs) under the Programme. Ghana also outperformed the inflation target under the programme as well as meeting all the structural benchmarks that were due end September 2024.

He expressed the government’s appreciation to all Ghanaians for their support noting that, “the strong support we have received from the people of Ghana and other key stakeholders have contributed significantly to the great progress we are witnessing”.

On economic performance up to the end of September, Dr Amin Adam noted that the remarkable performance under programme so far, in terms of GDP, social protection measures, Inflation, debt restructuring, fiscal consolidation, efforts at stabilizing the cedi, financial sector stability etc.

Real GDP growth for the first half of 2024 was 5.8%, significantly higher than the 2.9% average growth the economy recorded in the first half of 2023 and the revised 2024 annual real GDP growth target of 3.1%.

“The 2024 first half-year growth of 5.8% is supported by growth of 4.8% in Q1 and 6.9% in Q2. The growth we have recorded in the first half of 2024 is the highest since the last 5 years,” he noted.

The Minister said Government remain committed to implementing sound fiscal policies, strengthening the financial sector, and restoring confidence in the economy through the successful execution of the IMF-supported PC-PEG.

“Let me assure you that the government is fully committed to fiscal discipline, ensuring that our policies remain focused on sustainability and economic stability, regardless of the electoral cycle.”

On his part, Mr. Stéphane Roudet, IMF Mission Chief for Ghana noted that the programme performance had been generally satisfactory with remarkable progress on debt restructuring, noting that continued implementation of the policy and reform agenda, especially in this election year, is critical to fully restore macroeconomic stability and debt sustainability.

“Discussions with authorities centered on reforms to enhance energy sector sustainability and transparency, as well as policies and reforms to strengthen revenue collections and expenditure controls in the run-up to the December elections. We also discussed efforts to strengthen key social protection programs to protect the most vulnerable from the impact of difficult economic circumstances and ongoing policy adjustment”.

IMF staff met with Dr Mohammed Amin Adam, Finance Minister, Dr Ernest Addison, Governor Bank of Ghana and their officials, as well as representatives from various MDAs. The IMF team also engaged with other stakeholders. END