Without bold reforms, Ghana risks an 18th IMF bailout – Dr K.Y. Amoako

Ghana could find itself seeking an 18th bailout from the International Monetary Fund (IMF) if urgent economic reforms are not undertaken, Dr K.Y. Amoako, President of the Africa Centre for Economic Transformation (ACET), has cautioned.

Speaking at the National Economic Dialogue (NED) 2025 on Monday, March 3, 2025, Dr Amoako expressed concern over the country’s prolonged reliance on external financial assistance, noting that Ghana has spent 40 of its 68 years since independence under IMF programmes.

“As we approach the conclusion of our 17th IMF bailout early next year, the fundamental question remains: Will this be the last, or are we simply paving the way for an 18th or 19th?” he asked.

Dr Amoako attributed Ghana’s economic challenges not only to global shocks but also to domestic policy failures, weak fiscal management, and corruption.

He warned that without a strong domestic revenue mobilisation strategy, the country would remain vulnerable to future financial crises.

He pointed out that the $1.7 billion Ghana is receiving from the IMF and World Bank this year is less than what the country spends on energy subsidies.

“It is a staggering comparison,” he said, adding that such structural imbalances undermine long-term economic stability.

Dr Amoako called for a clear financing strategy that aligns external funding with a national development plan while prioritising domestic revenue generation.

“We cannot continue to rely on foreign assistance to sustain our economy. Ghana must think and act differently,” he stated.

He proposed three key measures: establishing a Ghana Development Finance Platform to coordinate aid and investment flows, securing long-term financing commitments from major external partners, and strengthening domestic revenue mobilisation to curb financial leakages and illicit outflows.

“Ghana needs a financing strategy that is not only sustainable but also transparent and accountable,” he stressed.

“Without it, we risk repeating the cycle of economic distress and IMF dependence.”