Policy advocacy group Integrated Social Development Centre (ISODEC) has raised concerns over the government’s decision to pursue a new Policy Coordination Instrument (PCI) arrangement with the International Monetary Fund, warning that the move could weaken Ghana’s control over its own economic policies.
Speaking in an interview on Monday, May 18, economist Dr Adamu Abile argued that Ghana’s recent economic improvements were largely driven by internal measures rather than support from the IMF’s current $3 billion Extended Credit Facility programme.
According to him, policies such as gold reserve accumulation, tighter foreign exchange controls and stronger domestic resource mobilisation efforts played a more significant role in stabilising the economy.
“It is not necessarily the IMF programme that brought us here,” Dr Abile stated.
The economist maintained that Ghana’s continued return to IMF-supported programmes points to long-standing structural weaknesses within the economy and an overreliance on external policy guidance.
He also criticised arguments that the PCI arrangement would improve investor confidence and strengthen Ghana’s standing with international credit rating agencies. In his view, such reasoning mainly supports the country’s continued dependence on borrowing from international markets.
“When you talk about giving us policy credibility so that we have market confidence to go back and borrow, ISODEC has a serious objection to that,” he stressed.
Dr Abile further called for a development strategy focused on greater local ownership of strategic sectors, especially mining and gold resources. He argued that Ghana has the capacity to manage its economy independently without relying heavily on policy direction from international institutions.
“We are trying to outsource our policy sovereignty to Washington,” he warned.
Government officials, however, have defended the proposed PCI arrangement, insisting that it is not another bailout programme. According to the government, the agreement is intended to serve as a technical framework to help maintain fiscal discipline, monitor reforms and prevent economic setbacks after Ghana exits its current IMF support programme.
The proposed arrangement has reignited debate over the country’s long-term economic direction, with critics questioning whether repeated IMF engagements promote stability or deepen Ghana’s dependence on external financial institutions.
By: Janice Opoku-Agyemang
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