Ghana is likely to adopt a Policy Coordination Instrument (PCI) after completing its current Extended Credit Facility (ECF) programme in August 2026.
JOYBUSINESS understands this from persons familiar with the ongoing IMF programme and those managing the country’s fiscal space.
Sources say the consideration has been influenced in part by concerns among investors and development partners about Ghana’s ability to sustain fiscal discipline after exiting the current IMF-supported programme.
Government, however, views the potential arrangement more as a signal of assurance to investors and a way to reinforce confidence in its post-ECF policy framework, rather than an indication of weakness in maintaining fiscal discipline.
Officials also believe the instrument could help align ministries, departments, and agencies more closely with the government’s fiscal consolidation agenda under President John Mahama after the IMF programme ends in August 2026.
There are strong indications that an announcement on Ghana’s possible adoption of the PCI could be made in the coming weeks or during the Mid-Year Review of the 2026 Budget.
Understanding the Policy Coordination Instrument
The Policy Coordination Instrument (PCI) is a non-financing IMF arrangement available to all member countries.
It allows for closer policy engagement with the IMF and provides endorsement of a country’s reform programme, helping to signal commitment to reforms and potentially catalyse financing from development partners and private investors.
The PCI is designed to help countries:
• Prevent economic crises and build buffers against external shocks
• Strengthen macroeconomic stability
• Address underlying macroeconomic imbalances
Unlike financing programmes, the PCI does not provide direct funding but serves as a policy signalling tool. It requires approval by the IMF Executive Board, unlike the Staff Monitored Programme, which is an informal arrangement between IMF staff and member countries.
Eligibility is limited to countries that do not require IMF financing for balance of payments support at the time of approval and have no overdue obligations to the Fund.
Policies under the PCI are expected to meet standards similar to those under IMF lending programmes.
Reviews are conducted on a fixed schedule, usually every six months, to assess performance. Delays of up to three months may be allowed to give authorities time to implement corrective measures or mobilise financing where needed.
The PCI’s review-based structure also removes the need for waivers in cases of missed targets.
IMF officials say the programme can run for a minimum of six months and up to four years, with no limit on successor arrangements.
The PCI also replaces the Policy Support Instrument (PSI), which has been phased out.
Officials note that, unlike some IMF arrangements, the PCI is largely a technical and signalling framework, with advanced economies typically covering administrative costs.
IMF Officials React to Ghana’s Possible PCI Move
Sources close to the IMF in Washington DC have confirmed to JOYBUSINESS that the decision to pursue a PCI rests with the Government of Ghana.
One senior official said the Fund would welcome a formal request from Ghana but stressed that it is not in a position to push countries into adopting the instrument.
Another official noted that if the arrangement helps maintain investor confidence after the current ECF programme, it would be a positive step once Ghana takes the decision.
IMF Team in Ghana for Sixth Review Under Current Programme
Meanwhile, IMF staff are currently in Ghana for the sixth review of the ongoing programme.
JOYBUSINESS understands the mission is expected to conclude its work by Friday, May 15, 2026.
Engagements between government officials and the IMF team are said to be progressing largely as planned, although some concerns remain in the energy sector, particularly around funding gaps, restructuring, and fiscal pressures.
In the financial sector, the Fund is reportedly satisfied with the steps taken regarding banks with significant government ownership. However, outstanding issues involving a private commercial bank remain unresolved.
It is not yet clear whether the IMF mission will set prior actions before departing Ghana to prepare its report for Executive Board consideration in August 2026.
JOYBUSINESS understands that Ghana is likely to pass the review when the staff report is presented to the Board in August 2026, paving the way for the next tranche of disbursement.
By the end of the year, Ghana is expected to have received about US$2.8 billion under the programme, following successful earlier reviews. That amount could rise to over US$3 billion before the end of the year, depending on disbursements.
The current Extended Credit Facility programme was approved by the IMF Executive Board in May 2023 to help stabilise Ghana’s economy.
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