IMF approves one-year extension of fiscal support for Ghana

The International Monetary Fund (IMF) approved last month an extension of an aid package for Ghana initially worth $918 million. This will see the programme continue for an extra year beyond its original April 2018 end date.

The decision was made during a meeting of the Fund's executive board that also approved a tranche of $94.2 million in balance of payment support following the fourth review of the West African nation's programme.

Ghana, which exports cocoa, gold and oil, signed onto the programme in April 2015 hoping to restore fiscal balance to an economy dogged by budget deficits, rising public debt and inflation.

“The authorities have taken some encouraging steps and the economy is showing signs of recovery,” the IMF said in a statement. It called for additional efforts to address revenue shortfalls and full enforcement of expenditure control measures to contain spending and prevent the recurrence of domestic arrears.

Ghana should also tackle energy sector inefficiencies, particularly improving the management of the state-owned enterprises, the statement added.