Ghana Retains Top Position as Africa’s Largest Debtor to IMF for Concessional Lending

As of January 31, 2024, Ghana continues to hold the title of Africa’s most indebted country to the International Monetary Fund (IMF) in terms of Concessional Lending and Debt Relief Trust.

The country’s exposure to the IMF stood at 2.088 billion Special Drawing Rights (SDR), equivalent to $2.77 billion, according to the Fund’s Quarterly Finances report. This figure represents an increase from the previous record in July 2023.

Ghana’s reliance on the IMF for financial assistance has been notable, with the country receiving a $600 million bailout package from the IMF in both June 2023 and January 2024 to help revitalize its economy amidst economic challenges.

The report also indicates that Ghana’s concessional loan outstanding to the IMF accounts for 11.0% of Africa’s total indebtedness, which stands at SDR 18.804 billion.

Despite its significant debt burden, Ghana has demonstrated its commitment to repayment, having repaid SDR 61 million ($81.13 million) to the IMF.

The loans received by Ghana from the IMF fall under the category of concessional lending, providing low-interest financing aimed at supporting qualifying low-income member countries. This assistance is facilitated through the IMF’s Poverty Reduction and Growth Trust (PRG Trust).

While Ghana maintains its position as the largest debtor to the IMF in Africa, the Democratic Republic of Congo and Kenya hold the 2nd and 3rd spots respectively in terms of outstanding concessional loans to the Fund as of January 1, 2024.