The IMF has cut Ghana’s debt-distress risk rating to “moderate,” two years ahead of schedule.
A temporary diesel subsidy could cost the government about 500 million cedis ($43 million) in August.
The IMF says fuel subsidies should remain temporary and targeted as Ghana seeks to protect its fiscal recovery.
Four years after Ghana plunged into a severe debt crisis, the country has secured a “moderate” debt-distress risk rating from the International Monetary Fund. However, the IMF has immediately tempered the achievement by warning Accra against recently introduced fuel subsidies.
The IMF issued the warning in a report that MyJoyOnline reported on Wednesday, Aug. 5. The institution fears that the subsidies could weaken the fiscal recovery that Ghana has achieved after years of adjustment. The measure currently cuts the price of diesel by 2 cedis per liter during August.
The Energy Ministry estimates that the measure will cost the public finances about 500 million cedis, or roughly $43 million, if the government maintains it throughout the month.
“Fuel subsidy measures should be temporary and well targeted,” the IMF said in its report.
Ghana’s Energy Minister John Jinapor said the government would keep the relief measure limited to one month.
“The relief measure is valid for a period of one month, August 2026, and will be reviewed taking into account market conditions and other relevant factors,” Jinapor said.
A Remarkable but Fragile Recovery
Ghana has achieved a significant economic recovery since the IMF approved a $3 billion Extended Credit Facility program in 2023. Inflation has fallen from more than 50% to 5.3% in June 2026. Foreign-exchange reserves have nearly doubled. The country has also recorded a primary fiscal surplus, while the economy grew 6% in 2025, according to the IMF.
On July 27, the IMF’s Executive Board approved the sixth and final review of the program and released a final $371 million tranche. The board also cut Ghana’s debt-distress risk rating from “high” to “moderate,” two years earlier than the timeline set when it approved the program.
The IMF has also approved a new 36-month non-financial monitoring framework to support Ghana after the program ends. The framework identifies several remaining risks, including commodity-price volatility, geopolitical tensions in the Middle East and weaknesses among state-owned enterprises.
Some of those companies “continue to pose significant fiscal risks,” the IMF said.
This article was initially published in French by Abdel-Latif Boureima
Adapted in English by Ange J. A de Berry Quenum