The International Monetary Fund (IMF) has expressed full support for Ghana’s planned review of utility tariffs in the energy and power sectors, stating that the expected increases will help eliminate inefficiencies, attract investments, and settle longstanding debts in the electricity industry.
IMF Communications Director Julie Kozack made the remarks at a press briefing in Washington, adding that the Fund also backs broader reforms, including private sector participation in the operations of the Electricity Company of Ghana, to strengthen state-owned enterprises and reduce fiscal risks.
The comments come as the Public Utilities Regulatory Commission (PURC) engages stakeholders on proposals for a significant tariff adjustment set to take effect from October 1, 2025 as part of Ghana’s IMF-supported programme. The Electricity Company of Ghana has requested a hike of over 200 percent, though insiders say such a steep increase is unlikely to be approved. Economists warn that any sharp rise could fuel inflation and increase the cost of living, even as the IMF praises Ghana for outperforming growth.