Already burdened by high debt, Ghana is facing historic inflation of more than 40 percent and a collapse in the value of its currency – the cedi – economic difficulties exacerbated since the Russian invasion of Ukraine.
“I am pleased to announce that the IMF team has reached an agreement with the Ghanaian authorities on a three-year program (…) under the Extended Credit Facility (ECF) in the amount (…) of about 3 billion U.S. dollars,” said the IMF mission chief in Ghana, Stephane Roudet.
The loan “aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth,” Roudet added in a statement.
The agreement must now be approved by the IMF Executive Board in Washington, he continued.
Ghanaian President Nana Akufo-Addo has come under fire for his handling of the economic crisis and in particular for seeking IMF assistance, having once promised a “Ghana without aid.
Many Ghanaians fear that with this agreement the government will be forced to impose austerity measures that will further burden the population, which is already facing soaring prices.
Ghana is a major producer of cocoa and gold and has oil and gas reserves, but its debt service payments have skyrocketed. And like the rest of sub-Saharan Africa, it has been hit hard by the consequences of the global pandemic and the war in Ukraine.