Government targets improved credit rating under new IMF PCI Arrangement

Government is aiming for a significant improvement in Ghana’s sovereign credit rating as the country prepares to transition from the International Monetary Fund’s bailout programme into a new non-financing Policy Coordination Instrument (PCI) arrangement focused on sustaining macroeconomic stability and rebuilding investor confidence.

Technical Advisor at the Ministry of Finance, Dr Theo Acheampong, says the proposed IMF-backed framework could help Ghana move from its current “B” credit rating to the “BB” category, a development expected to reduce borrowing costs and improve access to cheaper financing for both government and private sector institutions.

Speaking on The Point of View hosted by Bernard Avle, Dr Acheampong explained that the PCI arrangement is not another bailout programme but rather a policy support framework designed to strengthen investor confidence and improve Ghana’s credibility with international ratings agencies.

“The target is actually to get to a double B,” he stated, noting that such an upgrade could reduce Ghana’s cost of capital by between 100 and 200 basis points.

According to him, the benefits of an improved credit rating would go beyond government borrowing.

“It’s not just for the sovereign,” Dr Acheampong stressed. “For other investors looking to raise capital, the country risk premium for Ghana would come down.”

Ghana recently completed its IMF-supported $3 billion Extended Credit Facility programme ahead of schedule and is expected to transition into the PCI framework by July 2026.

Dr Acheampong indicated that the arrangement would provide technical policy guidance and fiscal discipline mechanisms without requiring additional borrowing from the IMF.

He further argued that the framework could help Ghana avoid the election-year fiscal slippages that have historically contributed to the country’s repeated return to the IMF for support.

The Ministry of Finance also believes the PCI arrangement could improve Ghana’s access to concessional funding from institutions such as the World Bank Group and the African Development Bank while strengthening confidence in the country’s long-term economic recovery.