Statement By Finance Minister After 4th Review of IMF-Supported Programme

Acknowledgments:

• Colleague Hon. Minister(s)

• Hon. Deputy Minister

• The IMF Mission Chief, Stephane Roudet, and the IMF Team

• Management and Staff of the Ministry of Finance

• Management and Staff of the Bank of Ghana

• Distinguished Members of the Media

• Invited Guests

• Ladies and Gentlemen

1. You are warmly welcome to the joint GoG-IMF press briefing on the 4th Review of the IMF-ECF Programme conducted by the IMF staff, led by Mission Chief, Stephane Roudet.

2. The IMF mission, which began on the 2nd of April 2025, has been successfully concluded today, the 15th of April 2025.

3. Ladies and Gentlemen, it has been two (2) weeks of hard work and commitment. What initially seemed like the most difficult review of the programme has ended successfully, with the IMF and the Government of Ghana reaching a Staff-Level Agreement (SLA) on the 4th Review today.

4. This marks a significant step in our collective effort towards resetting the economy for the Ghana We Want, in our quest to restore and sustain macroeconomic stability and debt sustainability, build resilience through strong and ambitious structural reforms, and lay the foundations for stronger and more inclusive growth and job creation, while protecting the poor and vulnerable.

5. We remain fully committed to the implementation of the programme and will do all it takes to ensure that its objectives remain on track, despite the challenges faced in implementation.

6. Although several structural benchmarks and quantitative targets under the programme were breached at the time we assumed office,

7. We have worked tirelessly to reverse the situation and, in some cases, fast-tracked the implementation of certain structural reforms ahead of schedule, while embarking on additional reforms.

8. To begin with, pragmatic and bold measures have been put in place to address the large buildup of payables in 2024, which resulted in a large primary deficit compared to the programmed modest surplus.

9. These measures aim to strengthen our spending commitment control system, eliminate the accumulation of payables, enhance budget credibility, and promote fiscal and debt sustainability.

10. These measures include:

i. We have commissioned the Auditor-General, together with two (2) international audit firms, to audit the payables and commitments to validate their legitimacy and values, and provide recommendations for corrective measures. The audit is expected to be completed within eight weeks.

ii. We have passed an amendment to the Procurement Act to ensure that the issuance of commitment authorisation (e.g., commencement certificate) by the Minister for Finance is a prerequisite for all central government procurements under the Authority or the Central Tender Review Committee.

iii. We have amended the PFM Act 2016 (Act 921) to introduce a debt rule to reduce the debt-to-GDP ratio to 45% by 2035, and an operational rule to post an annual primary surplus on a commitment basis of at least 1.5% of GDP. The amendment also legislates the establishment of an independent fiscal council to monitor adherence to these fiscal rules.

iv. We have commenced the operationalisation of the Compliance Desk at the Ministry of Finance to monitor MDAs’ compliance with their fiscal commitments under the PFM Act.

v. We will soon begin publishing a PFM Commitment Control Compliance League Table, ranking MDAs based on their level of compliance and non-compliance with PFM commitment controls and expenditure monitoring measures.

11. Ladies and Gentlemen, we have also addressed and implemented several structural reforms that were expected to be completed by end-December 2024 and end-March 2025, including the following:

i. We migrated 549 MDAs and MMDAs’ spending units’ accounts into the GIFMIS.

ii. The PURC has published on its website the validation report of the ECG revenue/collection accounts audit for Q4 2023 and the full year 2024, even though the structural benchmark conditionality was for H1 2024.

iii. The implementation of the recently announced quarterly tariff adjustments by PURC was executed to satisfy the Structural Benchmark conditionality under the programme.

12. Ladies and Gentlemen, I must acknowledge that fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall.

13. We have now operationalised the single account mechanism and ensured that the Cash Waterfall Mechanism is being implemented according to the guidelines, to guarantee minimum contractual payments to the IPPs, among others.

14. I would like to use this opportunity to assure the Ghanaian people, the IMF, and other key stakeholders that I will personally lead the charge to ensure the implementation of all our commitments under the Fund-supported programme, which are necessary for the approval of the 4th Review by the IMF Board.

15. This approval will trigger the immediate disbursement of the 5th Tranche of US$370 million, bringing total disbursements under the programme to US$2.3 billion.

16. Ladies and Gentlemen, reaching a Staff-Level Agreement (SLA) on the 4th Review marks significant progress towards building the Ghana We Want.

17. On behalf of H.E. President John Mahama, I wish to extend our heartfelt appreciation to the people of Ghana for their patience, resilience, and unwavering support.

18. We fully recognise the sacrifices made by every Ghanaian as we work together to restore macroeconomic stability, promote inclusive growth, and secure a brighter future for our nation.

19. We are equally grateful to the IMF Mission Team for their continued support, professionalism, and constructive engagement throughout this 4th Review Mission.

20. We look forward to continuing this strong partnership as we advance our economic recovery and reform agenda.

21. Thank you for your attention.

22. God bless our homeland Ghana.