Ghana ranks second most indebted African nation to IMF

Ghana has been identified as the second most indebted African nation to the International Monetary Fund (IMF) in terms of concessional lending.

According to the IMF’s Quarterly Finances, the country’s outstanding loans to the institution reached $2.914 billion as of October 31, 2024, representing 17% of total African borrowings from the IMF.

Only the Democratic Republic of Congo, with an indebtedness of $2.256 billion SDRs, surpassed Ghana. Zambia followed in third place with $1.272 billion in outstanding loans.

This revelation comes as Ghana grapples with a severe economic crisis that led it to seek a $3 billion bailout package from the IMF in January 2023. The country has so far received $1.92 billion under the Economic Credit Facility program.

Concessional lending refers to loans provided by the IMF on favorable terms, such as low-interest rates and extended repayment periods, to low-income countries. These loans are designed to support economic development and poverty reduction.

Both Ghana and Zambia, facing significant economic challenges, have defaulted on their loans, necessitating assistance from the IMF.

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