Ghana Preparing to Exit IMF Programme This Year – Haruna Iddrisu

Education Minister Haruna Iddrisu has announced that Ghana is on course to exit its International Monetary Fund (IMF) programme before the end of this year, a move he says will allow government to settle outstanding financial commitments and revive stalled infrastructure projects across the country.

Speaking during a visit to the construction site of the University of Engineering and Agricultural Sciences at Bunso in the Eastern Region, Mr Iddrisu said the country was nearing the end of the IMF-supported programme. “We are just preparing to walk out of the IMF programme. Before the end of August or by the close of this year, we should be out,” he stated.

According to the minister, Ghana’s exit from the IMF arrangement will provide fiscal space for government to meet unpaid obligations, especially on projects affected by the domestic debt exchange programme. He explained that the debt restructuring exercise significantly constrained public spending and delayed payments to contractors, leading to the suspension of several infrastructure developments.

Mr Iddrisu cited the University of Engineering and Agricultural Sciences project as a clear example of the impact of the debt exchange. The project, which commenced in 2022, stalled after government struggled to meet its financial commitments. “There is no doubt that the debt exchange programme caused long-term damage to the economy and affected the effective completion of projects like this,” he noted.

He disclosed that although government committed 90 million dollars to the university project, 28.6 million dollars remains unpaid. This amount, he said, includes 9.8 million dollars owed by the Ministry of Finance. Despite the arrears, the minister expressed confidence that the outstanding payments would be honoured once Ghana exits the IMF programme.

Mr Iddrisu said the Finance Minister has assured him that the concessionary financing arrangement supporting the project, particularly from South Korea, remains one of the most favourable available to Ghana. He added that discussions are ongoing to ensure the project is completed and expanded.

The Education Minister also revealed that President John Dramani Mahama is expected to visit South Korea later this year to seek additional funding for the university. “With certainty, the President will ask for additional financing to escalate this project so we can get better numbers,” he said.

Mr Iddrisu expressed optimism that renewed financing and improved economic conditions will accelerate work on the university and other stalled projects nationwide.