Ghana

Investment & 
Operational
Climate

Ghana’s economy encountered strong headwinds in 2022. Gross Domestic Product (GDP) growth which reached 5.4% in 2021, is estimated to have slowed to 3.2% in 2022, with projections of 1.6% GDP growth in 2023, according to the International Monetary Fund (IMF). However, rising inflation, which reached just over 54% in December, but has since moderated slightly, and the rapid depreciation of the Ghanaian cedi, along with global supply chain constraints and fiscal shortfalls, have affected the economic outlook. Russia’s invasion of Ukraine exacerbated these strains, provoking food and gas price hikes. With international capital markets closed and domestic financing drying up, in July 2022, the President authorized the Finance Minister to enter into talks with the IMF to address the balance of payments crisis and the Government of Ghana (GOG) concluded a Staff-Level Agreement (SLA) for a $3bn, three-year arrangement under the Extended Credit Facility (ESF) in December, pending IMF Board approval. Ghana suspended debt service payments on the majority of its external debt on December 19. Among the burdens weighing heavily on government finances are the sizeable arrears in the energy sector due to excess generation capacity, excess gas supply, high technical and commercial losses, and declining oil production.