IMF-backed reforms must tackle Ghana’s long-running energy crisis – Prof. Bokpin warns

Prof. Godfred Bokpin, a renowned economist and finance professor, has urged Ghana to address its long-standing energy crisis by implementing comprehensive reforms. During an appearance on JoyNews’ Newsfile, he emphasized the need for greater transparency, broader consultation, and a defined role for private-sector participation in the electricity distribution sector.

Prof. Bokpin highlighted that many of the challenges facing the Electricity Company of Ghana (ECG) have existed for decades, even before the country's current IMF-supported program. However, he acknowledged that the IMF program has contributed to increased transparency in the energy sector's management and improved the functioning of mechanisms to ensure revenue distribution.

He stressed that policymakers and the public should focus on measuring meaningful progress by utilizing the available data under the IMF-supported reforms rather than dismissing it. Among the reforms, Prof. Bokpin highlighted the cash waterfall mechanism as an area where the IMF program has made a positive impact, although there is still room for improvement.

Despite some progress, he warned that the financial burden of the energy sector remains extremely significant, calling for policymakers to allocate fiscal resources more judiciously, particularly in a time when Ghana faces pressure to prioritize limited funds for other critical areas.

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