Post-IMF Extended Credit Facility programme: Govt to invest 1% of GDP in key sectors – President Mahama
President John Dramani Mahama has announced that government will invest one per cent of Ghana’s Gross Domestic Product (GDP) annually into key sectors of the economy as part of efforts to expand growth and create jobs. He explained that the intervention, under the Policy Coordination Instrument (PCI) engagement with the International Monetary Fund (IMF), is … The post Post-IMF Extended Credit Facility programme: Govt to invest 1% of GDP in key sectors – President Mahama appeared first on Ghanaian Times.
Black News 
President John Dramani Mahama has announced that government will invest one per cent of Ghana’s Gross Domestic Product (GDP) annually into key sectors of the economy as part of efforts to expand growth and create jobs.
He explained that the intervention, under the Policy Coordination Instrument (PCI) engagement with the International Monetary Fund (IMF), is designed to stimulate economic expansion and address unemployment, particularly among the youth.
“In the Policy Coordination Instrument, we are creating space for the investment of one per cent of GDP in key areas, and one of the areas that has been identified is commercial agriculture,” President Mahama said.
He made the announcement at the Presidency in Accra last Friday when the Northern Regional House of Chiefs paid a courtesy call on him.
The announcement follows Ghana’s successful conclusion of a US$3 billion Extended Credit Facility programme with the IMF.
President Mahama said the Northern Region would be a key beneficiary of the programme, with planned investments in agro-processing and agribusiness aimed at creating employment opportunities for young people.
“And so this is why our government is prioritising investment in roads, irrigation, education, healthcare, energy access and local industrialisation across the Northern Region,” he stated.
Meanwhile, the Minister of Finance, Dr Cassiel Ato Forson, at a press conference held in Accra on Friday to announce Ghana’s exit from the IMF programme said the government and the Bank of Ghana were working together to address the negative equity recorded in the central bank’s 2025 financial statement.
He said plans were underway for the full recapitalisation of the Bank of Ghana by 2032, supported by automatic recapitalisation provisions under the BoG (Amendment) Bill, to strengthen the institution and enable it to effectively discharge its constitutional mandate.
The Bank of Ghana recorded a negative equity position of GH¢93.8 billion in its 2025 financial statement, widening from GH¢58.6 billion in 2024.
He explained that the central bank’s inability to pay dividends to the government was due to several factors, including the domestic debt exchange programme that began in 2022.
He assured that the government recognised the challenges facing the central bank and remained committed to resolving the negative equity position in the medium term.
The Division Chief of the African Department at the IMF, Mr Ruben Atoyan, said although the Bank of Ghana recorded negative equity in 2025, the key issue was whether the institution remained policy solvent and capable of generating sufficient income to cover its operational and monetary policy costs.
He noted that recapitalisation of the central bank was essential to strengthen its operations and would be considered in future IMF reviews and policy frameworks.
Mr Atoyan explained that 2025 was a unique year, as several factors affected the Bank of Ghana’s balance sheet, particularly high Open Market Operations costs. He said elevated inflation and interest rates created pressure on the central bank’s finances.
He added that the IMF supported the Bank of Ghana’s decision to sell half of its gold under the Gold-for-Reserves programme and had engaged the central bank on measures to minimise losses under the domestic gold purchase programme.
BY JULIUS YAO PETETSI
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The post Post-IMF Extended Credit Facility programme: Govt to invest 1% of GDP in key sectors – President Mahama appeared first on Ghanaian Times.
