IMF cautions Ghana over energy sector despite progress made in reducing energy debt
According to the Fund, the energy sector shortfall remains sizeable estimated at US$1.1 billion in 2026, reflecting high collection and distribution losses and costly generation contracts with capacity charges and “take-or-pay” clauses.
The International Monetary Fund (IMF) has expressed caution regarding Ghana's progress in the energy sector, despite recent improvements. While the sector's shortfall has decreased to US$1.1 billion in 2026 from US$1.6 billion in 2024, challenges remain in transforming it from a source of fiscal risks to a driver of inclusive growth.
The IMF highlights that significant challenges persist, including high collection and distribution losses, costly generation contracts, and large legacy debt that will require substantial fiscal support to clear. Additionally, institutional gaps, such as uneven enforcement of tariff adjustments and Cash Water Mechanism guidelines, leave the sector vulnerable to slippages, particularly during electoral periods.
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