Ghana has reached an agreement with the International Monetary Fund (IMF) on a $3 billion bailout loan, the organization announced on Tuesday (December 13th). Already overwhelmed by heavy debt, the West African country is facing historic inflation of over 40% and the collapse of its currency, the cedi; economic difficulties aggravated since the Russian invasion of Ukraine.
Concluded under the Extended Credit Facility (ECF), the loan “aims to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth”, said the IMF’s mission chief in Ghana, Stéphane Roudet. This agreement must now be approved by the IMF’s executive board in Washington, he continued.
Ghanaian President Nana Akufo-Addo is under fire for his handling of the economic crisis and in particular for having requested assistance from the IMF, he who had once promised a “Ghana without help”. Many Ghanaians fear that with this agreement, the government will be forced to impose austerity measures that would further burden the population, already confronted with the explosion of prices.
Ghana is a leading producer of cocoa and gold and is endowed with oil and gas reserves, but its debt service payments have soared. And like the rest of sub-Saharan Africa, it is being hit hard by the consequences of the global pandemic and the war in Ukraine.
To not miss any African news, subscribe to the newsletter of the “World Africa” from this link. Every Saturday at 6 a.m., find a week of news and debates covered by the editorial staff of the “World Africa”.