The International Monetary Fund (IMF) has called on Ghana to accelerate private sector participation in the operations of the Electricity Company of Ghana (ECG), warning that persistent weaknesses in the energy sector continue to pose major risks to public finances and long-term economic stability.
The recommendation formed part of discussions held during an IMF mission to Accra from April 29 to May 15, 2026, as part of the sixth and final review of Ghana’s Extended Credit Facility (ECF) programme.
In a statement issued at the end of the mission, the IMF stressed that reforms in the energy sector remain critical to sustaining Ghana’s economic recovery and protecting fiscal gains achieved under the bailout programme.
ECG inefficiencies remain a major concern
According to the IMF, urgent action is needed to address operational and financial challenges facing ECG, particularly distribution losses, weak revenue collection and mounting arrears.
“In the energy sector, priority should be given to tackling distribution and collection losses at the Electricity Company of Ghana (ECG), including by finalising the private sector participation in the distribution sector, enhancing payment discipline, clearing legacy arrears, and reducing generation costs.” - IMF
The IMF’s comments come amid continuing concerns about ECG’s financial position and the broader impact of inefficiencies within Ghana’s power sector on government spending and debt accumulation.
Analysts have repeatedly warned that unresolved challenges in the sector could undermine fiscal consolidation efforts and place additional pressure on state finances.
IMF acknowledges economic recovery progress
Despite the concerns, the IMF said Ghana’s economic recovery programme has delivered “substantial stabilisation gains” over the past year.
The Fund noted that inflation has declined significantly, confidence in the cedi has improved and external reserves have strengthened.
It also pointed to stronger-than-expected economic growth in 2025, supported by broad-based economic activity and increased gold export earnings.
However, the IMF cautioned that the global economic environment remains uncertain, particularly due to geopolitical tensions and disruptions linked to the ongoing Middle East conflict.
“The global environment remains uncertain,” the Fund warned, adding that rising energy, food and fertiliser prices could still affect Ghana’s economic outlook.
New IMF programme to focus on reforms
The IMF also disclosed that it had reached a staff-level agreement with the government on a new 36-month non-financing Policy Coordination Instrument (PCI), which will succeed the current bailout arrangement.
According to the Fund, the new programme will support continued fiscal adjustment, debt sustainability and reforms within state-owned enterprises.
The IMF further highlighted concerns about quasi-fiscal activities at the Bank of Ghana, particularly losses linked to the Domestic Gold Purchase Programme, saying greater transparency and stronger oversight remain necessary.
It also urged Ghana to deepen reforms in the cocoa sector to improve efficiency and strengthen the long-term sustainability of COCOBOD.
While commending the “resilience and determination of the Ghanaian people,” the IMF warned that maintaining macroeconomic stability would require continued discipline and reforms to avoid what it described as “past policy slippages.”
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