Ghana can fix its energy sector without IMF, World Bank – PUWU

The Public Utilities Workers Union (PUWU) has asserted that Ghana possesses the capacity to address its energy sector issues without significant reliance on the International Monetary Fund (IMF) and the World Bank. Enoch Paul Hayes, Deputy General Secretary of PUWU, emphasized that attention should be directed towards structural problems within the power sector, specifically the pricing of power generated by Independent Power Producers (IPPs) and existing agreements.

He questioned why power pricing by IPPs has not been a focal point despite being a critical concern. The IMF anticipates a financing gap of approximately US$1.1 billion in Ghana's energy sector by 2026, primarily due to high collection and distribution losses and expensive generation contracts. The IMF and the World Bank have advocated for quarterly adjustments to electricity tariffs and greater private sector involvement in power distribution.

However, Hayes urged Ghana to be more confident in its ability to resolve its issues independently, citing lessons from other African nations where IMF interventions had not improved the situation. He highlighted Ghana's successful turnaround of the Tema Oil Refinery as evidence of the country's capability to improve struggling state institutions.

Hayes also criticized the World Bank's stance on the Electricity Company of Ghana (ECG), pointing out that ECG's financial performance has improved despite the Bank's earlier criticisms.