The IMF’s Debt Sustainability Analysis, conducted before Ghana’s 17th Programme with the Fund, revealed that the country was in debt distress with a medium debt-carrying capacity. This underscored the need for Ghana to reassess its fiscal management, particularly towards the resolution of its governance and institutional inefficiencies. The energy sector, a major driver of Ghana’s economic challenges, required urgent reform to ensure fiscal and macroeconomic stability and prevent a relapse into debt distress.

Over a year after the approval of the IMF Extended Credit Facility (ECF), Ghana has made progress in its debt restructuring efforts, both domestically and externally. The approval of a fourth tranche this year under the ECF brings total disbursements to $2.36 billion. However, while these measures provide temporary relief, lasting debt sustainability depends on addressing deep-rooted governance challenges.

This debt tracker monitors the relationship between Ghana’s debt sustainability and key fiscal governance decisions, with a particular focus on the energy sector, a long-standing pressure point on the national budget.