The Integrated Social Development Centre (ISODEC) has warned that Ghana risks undermining its economic sovereignty under the International Monetary Fund’s (IMF) new 36-month Policy Coordination Instrument (PCI).
The Civil Society Organisation argued that the technical assistance programme effectively creates a parallel economic review mechanism with significant influence over Ghana’s access to international capital markets.
Speaking at a press briefing in Accra, Mrs Charlotte Kpogli-Dzadey, Policy Analyst at ISODEC, said the PCI imposes the same “upper credit tranche” conditionalities associated with regular IMF loan programmes, despite being a non-financing arrangement.
She explained that under the framework, Ghana would undergo IMF policy reviews every six months, with the Fund assessing the country’s economic performance and issuing verdicts that could influence investor confidence and borrowing capacity.
“This is not simply a technical economic matter. It is a governance matter. It is a sovereignty matter,” Mrs Kpogli-Dzadey said.
According to her, when Ghana’s ability to access international financing becomes dependent on IMF approval, economic decision-making gradually shifts away from domestic institutions toward external influence.
ISODEC further argued that the government’s current fiscal strategy remained heavily dependent on international borrowing instead of strengthening domestic fiscal capacity.
Mrs Kpogli-Dzadey described the situation as a “debt treadmill,” arguing that the IMF framework manages the country’s debt challenges rather than fully resolving them.
The organisation also criticised what it described as the underlying assumptions within IMF-supported economic frameworks for developing countries.
ISODEC said assumptions such as viewing fiscal deficits as inherently dangerous and insisting governments must earn revenue before spending often result in austerity measures, including cuts in public services, wage restraints, and subsidy removals.
The organisation maintained that not all fiscal deficits should be viewed negatively, particularly when they are directed toward productive national development.
According to ISODEC, deficits used to finance schools, renewable energy infrastructure, or public employment programmes differ significantly from deficits used to service external debt or support import-driven consumption.
As part of its recommendations, the organisation urged government to focus on strengthening domestic fiscal capacity through structural transformation policies.
These include expanding the tax base through formalisation of the informal economy, tackling illicit financial flows, investing in productive sectors to reduce import dependence, and implementing targeted public employment programmes.
ISODEC also encouraged Ghana to explore alternative sources of development financing outside traditional IMF programmes.
The organisation cited institutions and financing options such as the African Export-Import Bank, the African Development Bank’s domestic resource mobilisation windows, Sukuk bonds, and South-South development financing partnerships.
According to ISODEC, these alternatives could provide financial support without requiring the country to submit to upper credit tranche conditionalities.
Ghana officially concluded its $3 billion Extended Credit Facility (ECF) programme with the IMF on May 15, 2026.
Following the conclusion of the bailout programme, government opted to continue engagement with the IMF through the Policy Coordination Instrument, which provides technical policy guidance rather than direct financial support.
Government has indicated that the PCI arrangement is intended to promote transparency, attract private investment, and improve Ghana’s sovereign credit rating.
