Frequent IMF bailouts fuelled by overspending, not external shocks – Analyst
Economic analyst Emmanuel Boateng has attributed Ghana’s repeated reliance on the International Monetary Fund (IMF) for bailouts to unrealistic government spending rather than external shocks.
According to Mr Boateng, frequent changes in government and excessive expenditure on mega projects by successive administrations continue to deplete the nation’s fiscal reserves, leading to internal economic downturns.
Speaking on the Business Breakfast programme on ZED, Mr Boateng cautioned that governments must be circumspect with spending during election years to avoid unforeseen economic challenges for both incoming administrations and the country as a whole.
“This is not a statistical anomaly, it is a structural pattern. Most countries go to the IMF for bailouts after major external shocks or global financial crises such as war or famine. However, Ghana has been to the IMF seventeen times, which is quite alarming. Almost every president under the Fourth Republic has sought an IMF bailout,” he bemoaned.
Mr Boateng admonished political parties, especially those in power, to be prudent in their spending during election periods.
He also warned against the use of public funds for unrealistic mega projects initiated just months before elections.
“Every four years, as elections approach, government spending explodes. We hire more public workers we do not need, we initiate ambitious projects we cannot finish, constructing roads that are washed away by rains. In our winner-takes-all election system, winning an election means gaining control of all state resources. After spending heavily, reality kicks in and revenue does not increase enough to offset the shortfall,” Mr Boateng explained.
Meanwhile, Ghana is currently undergoing its fifth IMF review, with the Minister of Finance receiving the IMF team on 6 October 2025 to discuss the programme’s targets and reforms.
The country recently received a 367 million dollar disbursement in July 2025 after the IMF Executive Board completed the fourth review of its three billion dollar bailout programme, bringing total funds to approximately 2.3 billion dollars.
