Ghana has been ranked as the second most indebted African country to the International Monetary Fund (IMF) in terms of Concessional Lending and Debt Relief Trust, with its debt standing at 2.242 billion Special Drawing Rights (SDR), approximately $2.914 billion, as of October 31, 2024.
This debt accounts for 17% of Africa’s total borrowings from the IMF, making Ghana one of the largest borrowers on the continent. Until recently, Ghana held the top spot as Africa’s most indebted country to the Fund.
The Democratic Republic of Congo now leads the list, with an indebtedness of 2.256 billion SDR. Zambia follows Ghana in third place, with an SDR debt of 1.272 billion.
Ghana’s Economic Challenges and IMF Assistance
Ghana’s debt situation is attributed to its economic difficulties, which led the country to seek assistance from the IMF in January 2023. The IMF approved a $3 billion bailout package in May 2023 to support Ghana’s economic recovery under the Economic Credit Facility Programme.
So far, Ghana has received $1.92 billion of the bailout package. However, the country’s outstanding concessional loans to the IMF have increased since July 2024, reflecting continued financial pressures.
Concessional Lending
Ghana’s borrowing from the IMF is classified as concessional lending, which offers low-interest financing to qualifying low-income countries. The loans are provided through the Poverty Reduction and Growth (PRG) Trust, designed to assist countries in achieving economic stability.
Broader Implications
Ghana’s heavy reliance on IMF assistance underscores the challenges the nation faces in managing its economy and debt sustainability. The government is expected to implement structural reforms under the IMF program to address fiscal deficits and restore economic growth.
As Ghana navigates its recovery efforts, its position as one of the most indebted African nations highlights the broader issue of debt vulnerability among low-income countries on the continent.
