IMF Warns of Urgent Action Needed in Energy and Cocoa Sectors
The International Monetary Fund (IMF) has emphasized the necessity for swift and decisive action within the energy and cocoa sectors to fortify the ongoing fiscal policy adjustment, particularly within the context of the US$3 billion bailout program. This call to action follows the IMF Executive Board’s approval of the fourth review of the Extended Credit Facility (ECF), resulting in the release of an additional US$367 million in funding. The IMF’s guidance is crucial in fostering economic stability and growth.
Addressing Sectoral Challenges and Fiscal Slippages
While the nation’s economy exhibited more robust growth than anticipated in 2024 and early 2025, driven by increased activity in sectors such as mining, agriculture, ICT, and manufacturing, core program performance faced setbacks towards the end of the previous year. This downturn stemmed from fiscal slippages that occurred prior to the elections and delays in implementing structural reforms. Preliminary data reveals a notable increase in government arrears ahead of the December 2024 general elections. Furthermore, inflation exceeded the IMF’s targets, concluding the year at 23.8 percent, which was 80 basis points higher than projected.
The IMF’s call for immediate attention to the energy and cocoa sectors underscores the importance of sustained efforts to achieve the goals set out by the Extended Credit Facility. Addressing the identified challenges is critical for maintaining fiscal stability and ensuring long-term economic resilience.
Keywords
Related Keywords: Energy sector, cocoa sector, IMF, urgent action, decisive action, commodity prices, economic outlook, global economy, financial stability, sector challenges
