Categories: Local news

IMF backs tariff hikes as key to stabilizing Ghana’s energy sector

The International Monetary Fund (IMF) has endorsed Ghana’s planned utility tariff adjustments, stressing that they are crucial to resolving inefficiencies and attracting fresh investment into the electricity sector.

Speaking at a press briefing in Washington, D.C., on Thursday, September 11, 2025, IMF Director of Communications Julie Kozack said the Fund views tariff reforms as central to restoring financial health in the energy industry.

“From our perspective, tariff adjustments should help address longstanding inefficiencies, support critical investment in the power sector, and prevent the further build-up of arrears,” she stated.

Kozack emphasized that the IMF’s support extends beyond tariff changes to broader reforms, including promoting private sector participation in Electricity Company of Ghana (ECG) operations. These efforts, she explained, are aimed at improving the performance of state-owned enterprises and reducing fiscal vulnerabilities.

Her remarks coincide with ongoing consultations by the Public Utilities Regulatory Commission (PURC) on new tariff proposals set to take effect from October 1, 2025. Among the requests under review is a more than 200% increase submitted by the ECG.

The proposed hikes are expected to help restructure the sector’s mounting debt and enhance the sustainability of power supply in the long term.

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