Ghana’s economic path is increasingly under scrutiny as IMANI Africa, a leading think tank, has painted a dire picture of the nation’s ongoing reliance on the International Monetary Fund (IMF). Describing Ghana as a “relapsing IMF intensive care patient,” IMANI warns that the country’s continuous cycles of borrowing and bailout programs point to deeper structural issues that require urgent attention.
Ghana has turned to the IMF for the 17th time in recent history, seeking to stabilize its economy amid rising debt. This latest move comes from a public debt that hit GHS 575 billion by late 2022, partly driven by COVID-19-related spending and fiscal mismanagement. While the government has taken steps such as introducing new taxes, IMANI argues that these short-term measures are inadequate in addressing the systemic governance inefficiencies that have long plagued the country.
What sets this current bailout apart, however, is the growing concern that without significant reforms, Ghana’s economic recovery will be short-lived. According to IMANI, the country’s public financial management is characterized by poor contingency planning, inefficient procurement processes, and an overall lack of accountability. These factors, compounded by excessive borrowing, have left Ghana vulnerable to frequent financial crises, making it a regular customer of IMF assistance programs(
IMANI stresses that to break free from this cycle, Ghana needs to overhaul its governance and institutional frameworks. The think tank particularly emphasizes the need for robust monitoring mechanisms for loan usage and better coordination between public and private sectors. Without these reforms, any fiscal consolidation or debt relief provided by the IMF will only serve as a temporary fix.
The IMF’s own assessment of Ghana echoes similar concerns. After concluding a previous program in 2019, the Fund cautioned that Ghana remained at risk of fiscal instability, with economic vulnerabilities still looming large. The rising cost of debt servicing and the nation’s inability to generate sufficient domestic revenue further complicates the situation. As IMANI aptly notes, the country’s reliance on international financial aid mirrors a patient in critical condition, needing constant intervention to survive.
