Ghana is likely to adopt a Policy Coordination Instrument (PCI) after its current Extended Credit Facility (ECF) programme finishes in August 2026. Persons familiar with the country's economic management and the ongoing IMF programme indicated this possibility. This consideration stems partly from worries among investors and development partners about Ghana's ability to maintain financial discipline once the current IMF support ends. The government, however, sees the potential arrangement as a way to reassure investors and strengthen its economic plan after the ECF programme. Officials believe the PCI could also help government bodies better follow the country's fiscal consolidation goals after August 2026. An announcement about Ghana possibly adopting the PCI may come in the next few weeks. It might also be revealed during the Mid-Year Review of the 2026 Budget.
The Policy Coordination Instrument is a tool from the IMF that does not provide money directly. It allows for closer policy discussions with the IMF. It also endorses a country's reform plans. This signals a strong commitment to making needed changes. The PCI can help attract financing from development partners and private investors. It aims to help countries avoid economic problems and build defenses against outside shocks. It also works to strengthen economic stability. The instrument helps fix underlying economic imbalances. Unlike financing programmes, the PCI is mainly a way to signal policy intentions. The IMF Executive Board must approve a PCI. This is different from a Staff Monitored Programme, which is an informal agreement. Countries must not need IMF financing for balance of payments support to be eligible. They must also have no overdue payments to the IMF.
Policies under the PCI are expected to meet standards similar to those in IMF lending programmes. Reviews happen on a set schedule, usually every six months. These reviews check how well the country is doing. Some flexibility is allowed for delays. This gives governments time to make corrections or find money if needed. The review-based structure of the PCI means countries do not need waivers for missed targets. IMF officials state that PCI programmes can last from six months to four years. Successor arrangements do not have time limits. The PCI replaces an older tool called the Policy Support Instrument (PSI). Officials note that the PCI is mostly a technical and signalling framework. Advanced economies typically cover the administrative expenses.
Sources close to the IMF in Washington DC confirmed that the decision on the PCI rests with Ghana's government. An IMF official stated the Fund would welcome a formal request. This official stressed that the IMF cannot force countries to adopt the instrument. Another IMF official mentioned that if the arrangement helps maintain investor confidence after the current ECF programme, it would be positive. This is contingent on Ghana making the decision itself. Meanwhile, IMF staff are in Ghana for the sixth review of the current programme. Their work is expected to finish by Friday, May 15, 2026. Discussions with government officials are progressing as planned. However, some concerns remain in the energy sector. These include funding gaps, restructuring needs, and financial pressures. In the financial sector, the IMF is reportedly pleased with actions taken regarding banks with significant government ownership. Issues with a private commercial bank are still unresolved. It is unclear if the IMF mission will set out new prior actions before leaving Ghana. This is to help prepare its report for the IMF Executive Board meeting in August 2026. Ghana is expected to pass the review in August 2026. This will allow for the next payment of funds. By the end of 2026, Ghana is expected to have received approximately US$2.8 billion under the programme. This figure could eventually rise to over US$3 billion. The current ECF programme began in May 2023. It was approved by the IMF Executive Board to help stabilise Ghana's economy. This move reflects a strategic effort to solidify Ghana's economic standing.