Ghana ranked 4th highest debtor to IMF in Africa
Ghana, has secured the 4th position in terms of the highest outstanding debt owed to the International Monetary Fund (IMF), as per the Fund’s 2024 Quarterly Financial Statement. The data reveals that Ghana’s total indebtedness to the IMF amounts to 2.275 billion Special Drawing Rights, which is equivalent to $3.068 billion. This significant debt position places Ghana in a challenging financial situation, requiring strategic management and planning to address.
Comparatively, Egypt holds the top spot in Africa, owing a substantial amount of SDR 10.050 billion to the IMF. Following Egypt, Angola and Kenya rank second and third, with debts of SDR 2.989 billion and SDR 2.566 billion to the Fund, respectively. The shifting positions of countries like Nigeria and Morocco, dropping out of the top ten debtor list, pave the way for Cameroon and Ethiopia to enter the spotlight.
IMF loans, though providing temporary relief to member countries, can also lead to a potentially burdensome debt burden. It is crucial for countries to exercise prudent fiscal management to navigate the challenges associated with high levels of IMF borrowing. Additionally, the conditions attached to these loans further constrain the financial flexibility of governments, necessitating careful planning and resource allocation to meet repayment obligations. The dynamics of international financial assistance underscore the importance of sustainable debt management practices to ensure economic stability and growth.