Ghana Targets 15 Months Import Cover Under New Reserve Accumulation Policy

Ghana Targets 15 Months Import Cover Under New Reserve Accumulation Policy

 Ghana is aiming to build a stronger financial buffer against future economic shocks following a sharp macroeconomic recovery in 2025, Finance Minister Cassiel Ato Forson has announced.

Presenting a policy statement to Parliament, the Minister said the country recorded a decisive turnaround after the 2022–2023 economic crisis, with key indicators pointing to renewed stability and investor confidence.

According to him, real GDP growth averaged 6.1 percent in the first three quarters of 2025, while inflation dropped significantly from 23.8 percent in 2024 to 5.4 percent and further down to 3.8 percent in January 2026.

Interest rates also eased sharply, with the 91-day Treasury bill declining from 27.7 percent at the end of 2024 to 11.1 percent in December and further to 6.4 percent in February 2026.

The fiscal position strengthened considerably, as the primary balance shifted from a deficit of 3.0 percent of GDP in 2024 to a surplus of 2.6 percent.

Public debt fell from 61.8 percent to 45.3 percent of GDP, while the current account surplus rose to 9.1 billion dollars, up from 1.5 billion dollars the previous year.

The Ghana cedi also staged a strong recovery, appreciating by 40.7 percent against the US dollar, 30.9 percent against the British pound, and 24.0 percent against the euro.

Gross International Reserves increased to 13.8 billion dollars, equivalent to 5.7 months of import cover, compared to 8.9 billion dollars, or 4.0 months of import cover, in 2024.

While this level exceeds the traditional three-month benchmark, the Minister cautioned that it remains inadequate to fully shield the economy from disruptive external shocks, such as the steep currency depreciation witnessed in 2022–2023.

To address this vulnerability, Cabinet has approved the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), a strategic framework aimed at raising Ghana’s international reserves to cover 15 months of imports by the end of 2028.

The policy is anchored on the objectives of the Ghana Gold Board Act, 2025, which mandates the Ghana Gold Board to generate foreign exchange and support gold reserve accumulation by the Bank of Ghana.

The Minister explained that GANRAP is informed by Ghana’s historical cycle of economic downturns, evolving global risks, and the country’s long-term economic transformation agenda.

He emphasized that building stronger reserve buffers would enhance confidence, stabilize the exchange rate, and position Ghana to better withstand future global and domestic economic shocks.

The announcement signals a shift from short-term stabilization measures toward a longer-term strategy focused on resilience, fiscal discipline, and sustainable growth.