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The International Monetary Fund (IMF) has thrown its support behind Ghana’s Finance Minister, agreeing that inefficiencies in the energy sector remain one of the most significant threats to the country’s economic stability.
Speaking at the recently concluded IMF Spring Meetings in Washington, D.C., IMF Mission Chief for Ghana, Stéphane Roudet, reiterated the Fund’s ongoing concern over the financial imbalances plaguing the sector. He emphasized that reforming the energy sector is a critical pillar of Ghana’s IMF-supported economic recovery programme.
“We knew from the beginning of the program that there were challenges related to the energy sector,” Roudet stated while addressing Ghanaian journalists. “The main challenge is that you have a large difference between what ECG can collect in terms of bills and the costs that are generated in the sector—that’s what we refer to as the energy sector shortfall.”
Roudet explained that the gap between the Electricity Company of Ghana’s (ECG) revenue collection and the actual cost of power generation has been a key area of focus since the start of Ghana’s engagement with the Fund.
These financial shortfalls continue to undermine fiscal stability, placing pressure on public finances and threatening the overall success of the broader economic program.
Despite the challenges, the IMF remains optimistic about Ghana’s reform efforts. Roudet expressed confidence in the government’s commitment to meeting its targets under the program, signaling hope that progress in the energy sector would support long-term economic sustainability.
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