IMF urges Ghana to rely more on private sector for growth as global funding tightens

The private sector must take a leading role in Ghana’s long-term economic growth as global funding conditions tighten, the International Monetary Fund (IMF) has urged in its latest Regional Economic Outlook for Sub-Saharan Africa.

In its April 2025 Regional Economic Outlook for Sub-Saharan Africa, the IMF said countries like Ghana would increasingly need to depend on private sector innovation and investment to meet their development goals, as official development assistance and concessional financing are expected to decline.

“With external funding conditions becoming more constrained, the burden of achieving long-term development targets will increasingly fall on domestic private sectors,” the IMF stated.

The report noted that while Ghana had made progress in stabilising its macroeconomic environment, sustained growth would require the implementation of structural reforms aimed at improving the business climate, supporting trade integration, and attracting private investment.

It also stressed the need to strengthen governance, invest in infrastructure, and develop human capital to create an environment in which the private sector can thrive.

The IMF observed that nearly one-third of the population of sub-Saharan Africa, including Ghana’s vulnerable groups, still lives below the international poverty line. It warned that without strong private sector-led growth, efforts to reduce poverty could be undermined.

The Fund called for greater mobilisation of domestic revenues and improved spending discipline to support important sectors and promote inclusive development.