By Belinda Nketia
Dr. Senanu Kwasi Klutse, Senior Lecturer and Head of the Finance Department at NIBS University, has advised the Government of Ghana to spend the upcoming $370 million IMF disbursement with caution, warning that mismanagement could undermine the country’s fragile economic recovery.
Speaking on the GTV Breakfast Show with host Thelma Tackie on 16th April 2025, Dr. Klutse explained what the funds are meant for, why careful coordination with the Bank of Ghana is crucial, and how the disbursement could impact the average Ghanaian.
He said the money, which is expected following the completion of the fourth review of Ghana’s IMF programme, is primarily for balance of payments support and partially for budgetary use.
However, Dr. Klutse warned that if the money is not carefully used for its intended purpose, it could lead to a release of too much liquidity into the system.
“If you allow a lot of liquidity into the system, it is going to chase foreign currency,” he said. “An artificial demand will be created, and you’ll be forced to use your reserves to stabilize the cedi.”
The senior lecturer also noted that for the ordinary Ghanaian, the funds could mean continuity of some community development projects, but he urged the government to prioritize projects that will generate revenue or stimulate economic activity.
He also cautioned against complacency, stating that despite positive messaging from credit rating agencies and civil society organisations last year, Ghana is still grappling with serious economic challenges.
“We are not out of the woods,” he stated. “The banking sector still has issues, government finances are weak, and we missed our inflation target for 2024. This means the Bank of Ghana is far from reducing the policy rate.”
Dr. Klutse further urged government leaders to communicate honestly with the public so citizens can manage their expectations. “Let’s carry everyone along by telling them what the situation truly is,” he advised.
The fourth review of Ghana’s $3 billion Extended Credit Facility programme was concluded at the staff level in April 15 2025. It assesses Ghana’s progress in restoring fiscal discipline, stabilizing inflation, and managing debt. The successful review clears the way for a $370 million disbursement, pending IMF Board approval in July.
