IMF Projects Ghana's Debt to Fall to 60% of GDP as World Bank Disburses $360M

Ghana's economic reform program is yielding significant dividends, with international financial institutions acknowledging substantial progress in debt reduction and macroeconomic stability. The developments highlight both the achievements and ongoing challenges as the country navigates its post-debt restructuring recovery path.

IMF Projects Ghana's Debt-to-GDP Ratio to Reach 60% by End-2025

The International Monetary Fund (IMF) has projected that Ghana's public debt will decline to approximately 60% of Gross Domestic Product (GDP) by the end of 2025, marking a dramatic improvement from previous years. This positive outlook follows the successful completion of Ghana's recent debt restructuring program.

IMF Director of Communications Julie Kozack stated that the restructuring has "significantly improved debt service indicators for Ghana," describing it as a "meaningful step toward restoring fiscal sustainability." The improved debt outlook provides crucial space for economic rebound and critical investment inflows.

Kozack emphasized that sustaining these gains will require continued reforms, particularly in boosting domestic revenue, strengthening public financial management, and maintaining fiscal discipline. The projection aligns with Bank of Ghana data showing the total debt stock stood at GH¢613 billion (43.8% of GDP) as of June 2025.

World Bank Disburses $360 Million to Support Ghana's Recovery

The World Bank has disbursed $360 million to Ghana through its International Development Association (IDA), providing significant support for the country's ongoing economic recovery efforts.

The funds, released under the Second Resilient Recovery Development Policy Financing operation, aim to support the government's efforts to restore macroeconomic stability and build foundations for sustainable and resilient economic growth. The support focuses on four key objectives:

1. Restoring fiscal sustainability

2. Supporting financial sector stability and private sector development

3. Improving energy sector financial discipline

4. Strengthening social and climate resilience

   
   

This disbursement complements earlier budgetary support and reinforces ongoing reforms under Ghana's IMF program, representing a comprehensive approach to crisis response and long-term resilience building.

NEDCo Proposes 171% Tariff Hike to Address Financial Pressures

The Northern Electricity Distribution Company (NEDCo) has joined other utilities in seeking major tariff adjustments, proposing a 171% increase in its Distribution Service Charge from the current 56.474 pesewas to 153.03 pesewas per kilowatt-hour for 2025.

Hashim Iddrisu, NEDCo's Director of Commercial, explained that the proposed increase is necessary to improve collection rates and reduce distribution losses from 31% to 21%. The company cited its vast operational area with a sparse customer base and significant foreign currency-denominated capital expenditures as key challenges affecting its financial sustainability.

NEDCo's proposal follows similar requests from ECG (224% hike), Ghana Water Company (281%), and Ghana Gas (91%), creating a complex challenge for regulators balancing utility viability with consumer affordability.

Investor's Insight – ACCESS Bank Shares Surge 214.42% YTD

Amid these macroeconomic developments, ACCESS Bank shares have delivered exceptional performance, recording an impressive 214.42% year-to-date gain. This outstanding performance reflects growing investor confidence in Ghana's financial sector and the broader economic recovery, positioning banking stocks as attractive investment opportunities.

This week's developments present a compelling narrative of Ghana's economic transformation. The substantial debt reduction acknowledged by the IMF, coupled with significant World Bank support, demonstrates the effectiveness of the government's reform agenda. However, the simultaneous push for utility tariff increases highlights the ongoing challenges in balancing fiscal sustainability with social considerations.

For investors, Ghana's improving macroeconomic fundamentals, particularly the reduced debt burden and external support, create a more favorable investment environment. The stellar performance of banking stocks like ACCESS underscores the sector's potential, though utility tariff decisions will be crucial in determining the inflation outlook and overall economic stability.

Stay tuned to the Cedi Board® for real-time updates on Ghana's financial pulse. From prices and policy to investment tips that help you make sense of the numbers.