The International Monetary Fund (IMF) has supported the Finance Minister’s evaluation that the inefficiencies in Ghana’s energy sector represent the most significant risk to the nation’s economic stability.
IMF Mission Chief for Ghana, Stéphane Roudet, reiterated the Fund’s ongoing concerns regarding the financial deficiencies in this sector, stressing that reforms in the energy sector are essential to Ghana’s IMF-backed program.
During a discussion with Ghanaian journalists at the recent IMF Spring Meetings in Washington, D.C., Roudet pointed out that the issues within the sector—especially the gap between the revenue generated by the Electricity Company of Ghana (ECG) and the actual costs of electricity production—have been a primary focus since the program’s inception.
He remarked, ‘From the outset of the program, we recognized the challenges associated with the energy sector.
The principal issue is the significant disparity between what ECG can collect in terms of billing and the costs incurred in the sector—this is what we identify as the energy sector shortfall.’
He also conveyed hope regarding the government’s proactive commitments to achieving the program’s objectives.
