The International Monetary Fund (IMF) is set to engage in critical discussions with the government this week as Ghana finalizes its 2025 budget, which is scheduled for presentation in March.
These talks come at a crucial time, with the government planning to eliminate key tax measures, including the controversial E-levy, betting tax, and COVID-19 levy. These taxes, introduced by the previous administration to boost domestic revenue, have faced strong opposition from businesses and citizens.
As Ghana remains under an IMF-backed $3 billion Extended Credit Facility (ECF) program, the fund is expected to assess whether the proposed tax cuts align with the country’s fiscal consolidation goals. The IMF will be looking for assurances that removing these levies will not weaken revenue targets or disrupt Ghana’s economic recovery.
Beyond revenue concerns, the government is also under pressure to address Ghana’s growing energy sector debt, which has placed a significant strain on public finances. With liabilities exceeding $2 billion, the sector’s financial challenges continue to threaten the stability of power producers and the broader economy. Independent Power Producers (IPPs) have repeatedly warned of potential power supply disruptions if the government does not settle outstanding arrears.
The financial difficulties within the energy sector have also contributed to the depreciation of the cedi, as the government requires substantial foreign exchange to meet its payment obligations to power producers. The IMF is expected to push for concrete measures to address inefficiencies in the energy sector, improve cost recovery, and establish a sustainable financial framework for the industry.
To secure IMF support, the government must present a clear roadmap detailing how it plans to offset revenue losses, settle energy sector debts, and maintain macroeconomic stability while implementing the proposed tax reforms.
The outcome of these discussions will be closely monitored by investors, businesses, and multilateral partners as Ghana seeks to balance fiscal discipline, economic growth, and energy sector stability.
[10:13 am, 10/02/2025] Madam FATI: Mahama calls for resilience and unity at Chinese Lantern Festival Gala
President John Dramani Mahama has urged Ghanaians to remain hopeful and united despite the economic and social challenges facing the nation.
Speaking at the Chinese Lantern Festival Gala, he emphasized that in times of uncertainty marked by economic instability, global conflicts, climate change, and emerging health concerns hope must never be lost.
“As we celebrate tonight, let us reflect on the deeper message of this festival. The world today faces many challenges, economic uncertainty, global conflicts, climate change, and emerging health concerns. Yet, the light of this festival reminds us that even in times of darkness, hope must never be lost.
“It teaches us that resilience and unity can help us overcome obstacles and build a better future together, he said.
The festival, celebrated as a symbol of light overcoming darkness, served as a reminder of resilience, determination, and the power of shared aspirations. President Mahama acknowledged the efforts being made to address Ghana’s economic difficulties and expressed gratitude for the support of international partners, including China.
Stressing the importance of collaboration, he underscored that when people stand together in unity, no challenge is insurmountable. His message resonated with the festival’s theme, which promotes harmony and collective strength in overcoming obstacles.
