IMF: Ghana’s energy sector is biggest threat to economy

The International Monetary Fund (IMF) agrees with Ghana’s Finance Minister that energy sector inefficiencies pose the greatest threat to the nation’s economy.

IMF Mission Chief for Ghana, Stéphane Roudet, spoke to journalists during the IMF Spring Meetings in Washington, D.C. He said the financial gaps in the sector remain a major concern in the ongoing reform program.

Roudet highlighted the problem with electricity revenue. The Electricity Company of Ghana (ECG) collects far less than what it costs to produce power.

“We knew this from the start,” he said. “The key issue is the shortfall between ECG’s collections and the actual cost of electricity.”

Despite the challenge, Roudet expressed confidence in the government’s commitment. He believes Ghana can meet the program’s goals through continued reforms.