Recent reports indicate that Ghana is the second most indebted country to the International Monetary Fund (IMF) in Africa regarding Concessional Lending and the Debt Relief Trust.

A report by myjoyonline.com on January 9, 2025, stated that Ghana’s exposure to the IMF stood at 2.242 billion Special Drawing Rights (SDR), equivalent to $2.914 billion as of October 31, 2024.

Ghana has consistently ranked among the top 10 borrowers from the IMF and was previously the most indebted nation in West Africa.

Currently, Ghana is second only to the Democratic Republic of Congo, which holds the highest indebtedness to the IMF at 2.256 billion SDR. Zambia ranked third, with an indebtedness of 1.272 billion SDR.

Ghana’s exposure represents 17% of the total borrowings by African countries from the IMF. Both Ghana and Zambia have defaulted on their loans, prompting them to seek further assistance from the IMF.

According to the IMF’s Quarterly Finances, Ghana’s outstanding concessional loans to the Bretton Woods institution were higher than recorded in July 2024.

These loans are categorized as concessional lending, offering low-interest financing.

Many African countries have grown increasingly reliant on the IMF as they seek to address significant economic challenges.

However, acquiring substantial debt from the IMF often requires nations to adopt restrictive economic reforms known as Structural Adjustment Programs (SAPs).

As a result, the IMF’s role in Africa has long been a subject of controversy, raising questions about whether borrowing from the global financier is ultimately more harmful than beneficial.

SSD/MA

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