In March 2022, Ghana stood at a critical juncture. The country had exited its last International Monetary Fund (IMF) programme in 2019 in a relatively strong position. Inflation was back into single digits and the country was forecast to have the highest economic growth in the world that year. However, as the IMF noted as the programme ended, some challenges remained, not least the country’s vulnerability to external shocks. These shocks then came: first Covid, then global inflation, and finally the war in Ukraine. By March 2022, import costs were rising, inflation was spiralling, and investors leaving Ghana in droves, creating intense pressure on Ghana’s foreign exchange reserves and raising the prospect of an imminent balance-of-payments crisis. With few options available, the president had to decide whether to return, for the 17th time in Ghana’s history, to the IMF, despite his government’s promise never to do so. In this case discussion, participants consider the costs and benefits of applying to the IMF for assistance, delve into decision-making and power at the IMF, and explore possible courses of action for Ghana as they navigate challenges relevant to many emerging markets and developing economies.

Coming soon