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resident John Dramani Mahama has disclosed that Ghana’s economy was in severe distress when his administration assumed office, with the International Monetary Fund programme completely off track and macroeconomic stability lost.
Speaking in Zambia during a three day state visit, the President explained that critical IMF indicators had failed due to decisions taken shortly before the elections, leaving the incoming government with little room for error.
“We had lost macroeconomic stability completely when an IMF programme all the IMF indicators by the time we took office were off track.”John Dramani Mahama
According to President Mahama, although the previous government had met certain IMF triggers, including the payment of a $360 million tranche, implementation of agreed reforms stalled immediately afterward. This failure, he said, left the programme in a fragile state when the new administration took over in January.
Emergency Measures to Rescue the IMF Programme
The President revealed that his first major task was to rescue the IMF programme before the scheduled review mission in April. He said an emergency meeting was convened immediately after assuming office, bringing together the Ministry of Finance and other key stakeholders to realign Ghana with IMF commitments.
“So, we came in January and the programme was completely off track and so we had to call an emergency meeting and got our finance team and everybody to start working to try to put the programme back on track before the IMF review mission in April.”John Dramani Mahama
Between January and April, government focused on implementing tough fiscal and structural reforms that had been previously agreed with the IMF. These included legislative commitments, tax reviews and difficult economic decisions that had to be taken early in the administration.
“We had to look at all those things and take all those tough decisions in the early days you know, before April.”John Dramani Mahama
IMF Review Delivers Positive Verdict
President Mahama said the difficult measures paid off when the IMF review mission arrived. Ghana’s efforts were rewarded with a positive assessment, paving the way for the release of the next tranche of IMF support.
“Happily when the mission came and did the review we had managed to bring the programme back on track and so they gave us a positive mark for it and the next tranche of the IMF support was released and that gave a new lease of life to the economy.”John Dramani Mahama
He described the IMF endorsement as a turning point that restored confidence in the economy and signaled the beginning of a broader economic recovery.
Strong Coordination Between BoG and Finance Ministry
A major factor behind the turnaround, the President said, was the unprecedented level of coordination between the Bank of Ghana and the Ministry of Finance. He praised the leadership of the Governor of the Bank of Ghana and the Finance Minister, Dr Cassiel Ato Forson, noting that fiscal and monetary policy had been aligned effectively.
“For the first time I’ve been President before and when I say for the first time I’ve seen the best working relationship between the Bank and the Ministry of Finance.”John Dramani Mahama
According to him, this collaboration has ensured policy coherence and stability, supported by seasoned economists and professionals serving on advisory boards.
Inflation Declines as Stability Returns
President Mahama noted that inflation has been on a consistent downward trend since his government took office. He highlighted the latest inflation figure of 3.8 percent as confirmation that economic stabilization efforts are yielding results.
“Since we took office, inflation has been on the decline, Indeed we’re just getting off the plane the news broke that it had fallen further to 3.8%.”John Dramani Mahama
He said declining inflation has improved predictability and confidence within the economy, making Ghana more attractive to investors, manufacturers and producers.
Cedi Delivers Historic Performance
One of the most striking elements of the economic recovery, according to the President, is the remarkable performance of the Ghanaian cedi. After years of depreciation, the currency posted a historic appreciation in 2025.
“He surprised everybody in 2025 with an astounding performance began with a 47% appreciation against the dollar but ended the year at 32% appreciation overall.”John Dramani Mahama
President Mahama emphasized that this achievement was not the result of artificial controls or currency pegs. “This time we didn’t lock the dollar but the Cedi itself has punched the dollar and subdued,” he said.
He described the currency’s performance as a key contributor to improved economic stability.
Investment Outlook and Fiscal Discipline
The President revealed that foreign direct investment figures are expected to show significant improvement. Preliminary estimates suggest Ghana attracted about $700 million in 2024, with projections for 2025 approaching $2 billion once calculations are completed.
He also highlighted strong fiscal performance, noting that the government exceeded its IMF primary balance target.
“We were given a target on primary balance of 1.5% we appear to have done above 2% of GDP.”John Dramani Mahama
State Owned Enterprises Under Scrutiny
President Mahama concluded by addressing reforms within state owned enterprises. He said many SOEs are now returning to profitability after years of losses and warned chief executives to comply with audit and reporting requirements.
“Woe betides a chief executive of a state owned enterprise who by the end of April which is the target date has not done your audits and presented your annual reports.”John Dramani Mahama
He stressed that accountability and transparency remain central to sustaining Ghana’s economic recovery.
