Fitch Solutions: Ghana’s NDC Government to Stick with IMF Programme

Ghana’s ruling National Democratic Congress (NDC) government is expected to stay committed to the International Monetary Fund (IMF) programme, despite failed renegotiation efforts, according to a new report by Fitch Solutions. The UK-based research firm believes that withdrawing from the IMF programme is highly unlikely, as Ghana heavily relies on IMF support to maintain external financial stability.

IMF Support Key to Economic Confidence

Fitch Solutions highlights that IMF funding plays a crucial role in sustaining Ghana’s foreign exchange reserves and bolstering investor confidence. Without this assistance, the country could face severe financial instability, making the programme essential for macroeconomic management.

“We think it is highly unlikely that the authorities will pull out of the programme following unsuccessful renegotiation attempts, given Ghana’s reliance on IMF assistance for external stability,” Fitch Solutions noted.

Although the IMF-backed fiscal consolidation measures aim to restore economic stability, they are expected to trigger resistance from the public. Ghana has already witnessed a decline in inflation from 53.6% in January 2023 to 23.5% in January 2025. However, this figure remains significantly higher than the country’s pre-pandemic 10-year average of 12.1%.

With reduced government spending and increased tax burdens, Ghanaian households are expected to feel even greater financial strain. Fitch Solutions warns that these economic pressures could fuel public dissatisfaction, leading to protests and social unrest.

“This will keep protest activity high by historical standards, although we note that demonstrations will remain localised and short-lived, posing minimal risks to commercial operations,” the report added.