Ghana’s Balance of Payments Strengthens Sharply in 2024 Amid Rising Gold and Oil Exports — ISSER Report

Accra, Ghana — Ghana’s external sector performance saw a marked improvement in 2024, reflecting stronger trade dynamics, stabilized capital flows, and increased support from international financial programmes.

According to the 2024 State of the Ghanaian Economy Report (SGER) published by the Institute of Statistical, Social and Economic Research (ISSER), the country’s balance of payments position improved significantly compared to 2023, buoyed by reduced external payments, lower capital outflows, and inflows from the International Monetary Fund’s Extended Credit Facility (ECF) programme.

The report highlighted that the capital and financial account recorded lower net outflows due to decreased portfolio outflows and moderated debt repayments, while the current account benefitted from rising export earnings led by gold and crude oil.

“The external sector rebounded strongly in 2024, supported by favourable commodity prices, strategic import management, and renewed investor confidence,” the ISSER report noted.

Trade Performance: Gold and Oil Drive Surplus

Ghana’s trade balance widened to US$4.98 billion in 2024, nearly doubling from US$2.65 billion in 2023, underscoring the strength of its export recovery.

Merchandise exports rose by 21.4%, from US$16.66 billion in 2023 to US$20.22 billion in 2024, propelled by higher gold and crude oil exports.

Imports also increased, though at a slower pace — up 8.8% to US$15.24 billion from US$14.01 billion a year earlier. Non-oil imports were the main drivers of this growth, while the share of oil imports in total imports fell to 29.04% in 2024 from 31.94% the previous year, indicating improved energy self-sufficiency and stronger local refining capacity.

Over the five-year period from 2020 to 2024, mineral exports surged by 52.7%, reflecting robust production and pricing in the mining sector. Conversely, cocoa and timber exports declined by 16.5% and 10.2%, respectively, amid global price volatility and lower output.

Stronger Reserves and Policy Cushion

ISSER further reported that Ghana’s international reserves rose to the equivalent of 4.0 months of import cover, surpassing the official target of 3.0 months. This improvement was largely attributed to the gold-for-reserves programme and sustained inflows from current and financial accounts.

Analysts view this as a critical buffer for currency stability and debt servicing in the short term. The IMF’s ECF programme also provided crucial liquidity support, easing external financing pressures.

“By stabilising external accounts and strengthening reserves, Ghana has positioned itself for greater macroeconomic resilience in 2025,” ISSER observed.

The Road Ahead

While the outlook for Ghana’s external sector remains positive, ISSER cautioned that the decline in agricultural exports such as cocoa and timber could constrain overall diversification efforts. Policymakers were urged to invest in agro-processing, enhance export competitiveness, and maintain prudent debt management.

With gold, oil, and remittances providing a steady cushion, Ghana’s near-term external position appears robust. However, sustaining this balance will require continued fiscal discipline, effective import substitution strategies, and diversification of export earnings.

Source: Accra Business News