By Francis Kobena Tandoh
Ghana is expected to hire a transaction adviser to oversee the selection of private concessionaires for electricity distribution by the end of 2025, the International Monetary Fund (IMF) has said in its latest Staff Report on Ghana.
According to the IMF, the selection of a private concessionaire by the government will be followed by the actual transfer of electricity distribution operations from the Electricity Company of Ghana (ECG) to a private entity.
The report highlighted progress and ongoing challenges in the energy sector, including improved ECG payments through the cash waterfall mechanism, legacy payables to IPPs (independent power producers), and government plans to restructure debt
The IMF argues that ECG’s financial and operational inefficiencies—including high losses, poor revenue collection, and mounting debt—pose a risk to Ghana’s public finances.
To address this, the IMF supports private sector involvement to improve efficiency, reduce losses, and ensure a reliable power supply.
The Fund further notes that ECG’s inefficiencies contribute significantly to the energy sector debt, which affects government spending and economic stability and that reforming ECG is seen as crucial to achieving the goals of Ghana’s IMF-supported programme.
But government officials have assured that any reform will protect public interest, jobs, and national assets.
Meanwhile, labour unions and civil society groups have raised concerns about job security, tariff increases, and loss of national control.
Kwabena Nyarko Otoo, Deputy General Secretary of the Trades Union Congress (TUC) observed that Ghanaian workers are disappointed with the move by the IMF and the government.
He observed that the reforms undertaken by the ECG on its operations are yielding positive results and that the decision is unfounded.
“We are disappointed with the position taken by the IMF and the government. We are aware that the reforms undertaken by the ECG have improved tremendously,” said the TUC Deputy General Secretary.
Even though the government is yet to come out officially, recent comments by the energy minister John Jinapor suggests government stands with the position taken by the Fund. Enditem
Source: Ghana Eye Report
Share Us
