Financial analyst predicts energy sector woes for Ghana’s next govt

Financial analyst, Kofi Arkaah has forecasted challenges for the forthcoming government in addressing issues plaguing the energy sector.

He expressed concern over Ghana’s energy sector debts and predicted that the next administration would encounter significant obstacles in various economic sectors.

For several weeks, parts of the country have been grappling with erratic power supply, colloquially known as “dumsor”.

In an interview on The Point of View on Citi TV, Mr. Arkaah stated, “Look at what is happening in the energy sector; our debts have skyrocketed. Whoever comes in as the next administration is going to face a major challenge in the energy sector and other sectors. I mean labour, education, the financial sector. I speak to a lot of people, and due to the way the economy was managed, there’s hardly any activity.”

He advised the upcoming administration to take decisive steps to reduce the Treasury bill rate following the 2024 elections, anticipating increased expenditures during the electoral period.

“We are in the process of stabilizing the economy, but we are also in an election year, so the election year is going to be spending, and it’s all about what happens post-election. Post-election, the new administration coming in will they make a significant strategic decision to work on that T bill rate and bring that Treasury bill down?”

The way to do it is to do it in tandem with stabilizing your currency through the optimal reserve ratio and bringing down inflation, by curbing excessive spending, excessive spending is still going on, we will see what happens with the next administration,” Mr. Arkaah said.