The International Monetary Fund (IMF) has strongly backed Ghana’s Finance Minister’s warning that the country’s energy sector represents the biggest threat to its economic health. Stéphane Roudet, IMF Mission Chief for Ghana, reiterated that longstanding inefficiencies and financial gaps within the sector could derail Ghana’s broader economic recovery. These concerns are not new but are now considered more urgent under the ongoing IMF-supported reform program.
Speaking at the IMF Spring Meetings in Washington, D.C., Roudet pointed specifically to the persistent mismatch between electricity revenue collected and the actual cost of power generation. He explained that this shortfall, driven largely by under-collection by the Electricity Company of Ghana (ECG)—is at the heart of the sector’s financial distress. This issue has been a central focus since the IMF’s program with Ghana began.
The IMF has consistently emphasized that without substantial reform in how energy is produced, priced, and paid for, the broader economy remains vulnerable. The fiscal drag from the energy sector bleeds resources that could otherwise support growth or public services, reinforcing the Fund’s push for structural changes. Roudet’s remarks indicate that addressing these imbalances is not only critical but urgent.
Despite the challenges, there is some optimism. Roudet praised the Ghanaian government’s commitment to tackling these problems head-on, suggesting that their recent pledges reflect a stronger intent to implement tough reforms. If followed through, these efforts could restore confidence and stabilize a key part of the national economy.
Source: Citi newsroom