The International Monetary Fund (IMF) has called on Ghana to speed up private sector involvement in the operations of the Electricity Company of Ghana (ECG), warning that persistent inefficiencies in the energy sector continue to pose risks to public finances and overall economic stability.
The recommendation was made during discussions between an IMF mission team led by Mr. Ruben Atoyan and Ghanaian authorities, as part of a visit to Accra from April 29 to May 15 for the sixth and final review of Ghana’s Extended Credit Facility programme.
In a statement issued at the end of the mission, the IMF stressed that safeguarding public resources will require urgent reforms in key state-owned sectors, particularly energy and cocoa.
It specifically highlighted the need to address distribution inefficiencies and revenue collection losses at ECG, urging authorities to finalise private sector participation in electricity distribution, improve payment discipline, clear legacy debts, and reduce generation costs.
The Fund noted that Ghana’s economic recovery programme has delivered notable improvements, including easing inflation, stronger international reserves, and increased confidence in the cedi. It also pointed to better-than-expected economic growth in 2025, supported by broad economic activity and strong gold export performance.
However, it cautioned that sustaining these gains will depend on continued reforms and strict fiscal discipline, adding that global risks remain elevated. It warned that rising global prices for energy, food, and fertiliser driven in part by geopolitical tensions could still affect Ghana’s economic outlook.
The IMF also announced staff-level agreement on a new 36-month Policy Coordination Instrument (PCI), which is not a financing programme but a framework to support ongoing reforms after the current bailout arrangement ends.
The new programme will focus on maintaining fiscal consolidation, ensuring debt sustainability, strengthening oversight of state-owned enterprises, and promoting inclusive growth.
Additionally, the Fund emphasised the need for greater transparency in quasi-fiscal operations, particularly at the Bank of Ghana, warning that losses linked to the Domestic Gold Purchase Programme highlight risks to the central bank’s balance sheet.
It also called for deeper reforms in the cocoa sector to improve efficiency and long-term sustainability.
Despite its concerns, the IMF commended Ghana’s progress under the programme and praised the resilience of citizens, while cautioning that avoiding past policy setbacks will be key to sustaining economic stability.