ECG Operations: IMF Pushes Government to Privatise Power Distributor Amid Energy Sector Issues
- The IMF urges Ghana to accelerate private sector involvement in the Electricity Company of Ghana
- Ghana's economic recovery shows promise, but ongoing reforms are essential for sustainability
- IMF warns of global uncertainties impacting Ghana’s economy, emphasising fiscal discipline and governance reforms
The International Monetary Fund (IMF) wants Ghana to fast-track private sector participation in the operations of the Electricity Company of Ghana.
The IMF warned that deep problems in the energy sector continue to threaten economic stability.
Source: Getty Images
The call captured in a statement formed part of discussions between an IMF staff team led by Ruben Atoyan and Ghanaian authorities during a mission to Accra from April 29 to May 15.
“In the energy sector, priority should be given to tackling distribution and collection losses at the Electricity Company of Ghana (ECG), including by finalising the private sector participation in the distribution sector, enhancing payment discipline, clearing legacy arrears, and reducing generation costs."
The IMF completed its sixth and final review of Ghana’s Extended Credit Facility programme.
The Fund’s latest intervention comes amid persistent concerns over ECG’s operational inefficiencies, mounting debts and revenue collection challenges.
The IMF acknowledged that Ghana’s economic recovery programme had delivered “substantial stabilisation gains,” with inflation declining rapidly, reserves improving and confidence in the cedi strengthening.
Source: YEN.com.gh
