Ghana to engage IMF policy coordination instrument after exit from bailout programme

The Government of Ghana has announced that it will engage the International Monetary Fund (IMF) Policy Coordination Instrument (PCI) following the successful conclusion of its Extended Credit Facility (ECF) programme.

According to the government, the PCI is a non-financing arrangement that provides technical assistance to support the implementation of economic reforms, strengthen policy credibility, and help attract investment from private and development partners.

A statement issued by the Minister of Government Communications, Felix Kwakye Ofosu, explained that the instrument does not provide financial bailout support but will help reinforce investor confidence, enhance capacity development, and catalyse new financing opportunities for Ghana.

“For the avoidance of doubt, the PCI does not provide financial bailout, but will offer continuous capacity development, confidence boost to the market, and deliver a catalytic effect for fresh financing to Ghana,” the statement said.

The government noted that the engagement is expected to complement efforts to achieve an investment-grade credit rating, which it says will reduce borrowing costs, attract long-term institutional investors, increase foreign direct investment, and support infrastructure and private sector growth.

“Ultimately, this engagement will support government’s effort to accelerate sustainable development, create jobs and raise living standards for all Ghanaians,” it added.

The announcement follows the government’s declaration on Friday, May 15, that Ghana has successfully completed its IMF ECF-supported programme. The government described the achievement as a milestone reflecting restored macroeconomic stability and improved debt sustainability ahead of schedule.

It further stated that after initial setbacks at the end of 2024, the administration of President John Dramani Mahama implemented fiscal consolidation measures, expenditure rationalisation, and structural reforms to put the programme back on track.

According to the statement, these measures have contributed to declining inflation, a stronger cedi, reduced public debt-to-GDP levels, and improved economic growth.

Ghana’s sovereign credit rating has also reportedly improved from restricted default status to a “B” rating with a positive outlook, marking multiple upgrades and reflecting improved fiscal performance, stronger external buffers, and renewed market confidence.

The government also indicated that gross international reserves have increased to about US$14.5 billion by February 2026, representing nearly six months of import cover.

It said these reserves strengthen Ghana’s ability to withstand external shocks and support economic stability.

Officials emphasised that while the IMF bailout programme has ended, the PCI engagement will continue to support reforms and help sustain economic gains while positioning Ghana for long-term growth and development.