The Minister of Finance, Dr. Cassiel Ato Forson, has clarified that the recent increases in utility tariffs, as announced by the Public Utilities Regulatory Commission (PURC), are part of Ghana’s ongoing commitments under its agreement with the International Monetary Fund (IMF).
This clarification follows PURC’s declaration of a 14.75% hike in electricity tariffs and a 4.02% increase in water rates, set to take effect on May 3, 2025. Dr. Ato Forson indicated that these adjustments are essential for accessing the next installment of $370 million from the IMF.
During a press conference held in Accra on Tuesday, April 15, the Finance Minister remarked: “We have initiated the implementation, which you have recently observed—the quarterly adjustment by PURC, which should have been completed last year. However, we have ensured that it aligns with the statutory benchmarks established in the third review.”
He also addressed rumors regarding a potential renegotiation of Ghana’s agreement with the IMF, asserting that the government has no plans to pursue such actions.
“Renegotiation implies a lack of confidence in the program, prompting a desire to revisit its parameters. This is not the government’s stance. We are dedicated to executing the program to fulfill the objectives set by the IMF,” he stated.
While acknowledging that certain structural benchmarks and quantitative targets were not met before the current administration assumed office, Dr. Ato Forson reiterated the government’s commitment to achieving the program’s objectives in the future.
