Ghana: BoG Governor Calls for Overhaul of IMF Support Framework for African Economies

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has called for significant reforms in how the International Monetary Fund supports its member countries, particularly across Africa.

Speaking at the African Consultative Group Meeting—attended by IMF Managing Director Kristalina Georgieva and members of the Fund’s Board—Asiama urged the institution to adopt more decisive and flexible approaches in addressing the growing economic pressures facing developing economies.

He noted that many African countries are grappling with elevated debt levels, tighter global financial conditions, and structural constraints that complicate economic adjustment, making a review of IMF support mechanisms both timely and necessary.

Call for Faster, Fairer Debt Resolution

A central pillar of Asiama’s proposal is the need to reform sovereign debt restructuring processes. He called on the IMF to take a more assertive role in accelerating debt resolution under existing frameworks, ensuring equitable treatment of countries and stronger participation from private sector creditors.

According to him, delays in creditor coordination often undermine recovery efforts, and should not be conflated with policy failures by borrowing countries.

Rethinking Programme Design

The Governor also advocated for a more nuanced approach to IMF programme design. He emphasised that assessment frameworks should clearly distinguish between delays caused by external factors—such as creditor negotiations—and those arising from domestic policy slippages.

This, he argued, would prevent countries implementing strong reforms from being unfairly penalised.

He further called for enhancements to debt sustainability tools, including the Low-Income Country Debt Sustainability Framework, and urged broader adoption of integrated policy approaches to better support countries at risk of, or already facing, economic crises.

Expanding Financial Support Tools

Beyond structural reforms, Asiama highlighted the need for the IMF to scale up its financial support mechanisms. He recommended increased concessional financing, more effective deployment of Special Drawing Rights (SDRs), and faster access to facilities such as the Resilience and Sustainability Trust.

These measures, he said, are critical for addressing climate-related vulnerabilities, liquidity constraints, and balance of payments pressures.

He warned that ongoing global disruptions—including geopolitical tensions in the Middle East—are intensifying economic challenges, driving inflation and weakening external balances across vulnerable economies.

Strengthening Capacity and Resilience

In addition to financial support, the Governor underscored the importance of sustained technical assistance from the IMF. He called for targeted capacity development initiatives to help countries strengthen revenue mobilisation, improve debt management, enhance public financial management, and build resilience against emerging risks such as cyber threats.

Asiama concluded that a more responsive, well-resourced, and adaptable IMF would be better positioned to support member countries navigating an increasingly complex global economic environment.