Ghana’s Finance Minister, Dr. Cassiel Ato Forson, is leading the country’s delegation to the 2025 IMF and World Bank Spring Meetings—the first under the new National Democratic Congress (NDC) administration led by President John Dramani Mahama.
The meetings come just one week after Ghana secured a staff-level agreement with the International Monetary Fund on the fourth review of its IMF-supported program. This agreement is expected to lead to the release of approximately 370 million dollars in support of Ghana’s economic recovery agenda.
What makes this agreement remarkable is that it was reached despite missed structural benchmarks and quantitative targets prior to the current administration’s tenure. The outcome is seen as a signal of renewed international confidence in Ghana’s economic direction, following swift, bold reforms initiated by the Mahama-led government.
The Mahama-led administration has worked tirelessly to reverse the country’s fiscal challenges. In many cases, it has fast-tracked the implementation of key structural reforms while introducing additional corrective measures aimed at restoring macroeconomic stability and credibility.
One of the most urgent issues addressed has been the large buildup of payables in 2024, which created a significant primary deficit—far exceeding the modest surplus that had been programmed. The government has responded with a bold and pragmatic reform package to curb arrears, reinforce spending discipline, and strengthen Ghana’s public financial management system.
Key measures implemented include:
- A full audit of government payables to validate claims and recommend corrective actions (expected to be completed in 8 weeks);
- Amendments to the Procurement Act, requiring Finance Ministry authorization before new procurements;
- A reform of the PFM Act, establishing:
- A binding 45% debt-to-GDP target by 2035;
- A primary fiscal surplus rule of at least 1.5% of GDP annually;
- An Independent Fiscal Council;
- Launching a PFM Commitment Control Compliance League Table that will rank MDAs based on their level of compliance with spending controls and financial discipline;
- Operationalizing a Compliance Desk at the Ministry of Finance to monitor how MDAs are adhering to fiscal rules.
These measures have not only tackled immediate fiscal pressures but have also accelerated structural reforms originally scheduled for completion by the end of December 2024 and March 2025—demonstrating its determination to stay ahead of schedule in resetting the economy.
Strategic Engagements in Washington
While in Washington, Dr. Forson and the delegation will engage with global leaders on critical development themes including job creation, energy access, food security, and climate resilience.
A key moment of the week will be Dr. Forson’s meeting with IMF Managing Director Kristalina Georgieva, where Ghana’s reform agenda and economic outlook will be examined. Further engagements are scheduled with the Paris Club, U.S. Treasury, rating agencies, and development partners—all aimed at strengthening collaboration and investor confidence.
Telling Ghana’s Reset Story
Throughout these engagements, Dr. Forson is expected to share “Ghana’s reset story”—a narrative focused on:
- Restoring and sustaining macroeconomic stability;
- Ensuring long-term debt sustainability;
- Protecting the vulnerable;
- Laying the foundation for inclusive and resilient growth;
This vision is anchored in the broader ambition of delivering “The Ghana We Want”—a future built on fiscal responsibility, transparency, and shared prosperity.
Source: www.kumasimail.com