The International Monetary Fund (IMF) will begin crucial discussions with the government this week as Ghana finalises its 2025 budget, set for presentation in March.
These talks come at a critical time, with the government planning to eliminate key taxes, including the controversial E-levy, betting tax, and COVID-19 levy.
Introduced by the previous administration to boost revenue, these taxes have faced strong opposition from businesses and citizens.
As Ghana operates under a $3 billion IMF-backed Extended Credit Facility (ECF), the IMF will closely evaluate how these proposed cuts align with the country’s fiscal goals.
The fund will want assurances that removing these taxes won’t derail revenue targets or hinder economic recovery.
In addition to tax concerns, the government is under pressure to address Ghana’s growing energy sector debt, which exceeds $2 billion and strains public finances.
Independent Power Producers (IPPs) have warned of potential supply disruptions if outstanding arrears are not paid, while the sector’s financial troubles have fuelled the cedi’s depreciation.
The IMF is expected to push for measures to address inefficiencies in the energy sector, improve cost recovery, and create a sustainable financial framework.
The government will need to present a clear strategy for offsetting revenue losses, resolving energy sector debts, and maintaining macroeconomic stability amid these tax reforms.
The outcome of these talks will be closely monitored by investors, businesses, and international partners as Ghana works to balance fiscal discipline, economic growth, and energy sector stability.