IMF Deal: Sector-wide Audit To Be Conducted On The Energy Sector — MoF Announces

The Minister of Finance, Dr Mohammed Amin Adam, has announced that a sector-wide audit of the energy sector will be conducted as part of the International Monetary Fund-supported programmes.

He also mentioned that the government will strengthen the implementation of the cash waterfall mechanism as part of the reforms.

During a joint press conference by the Government of Ghana and the International Monetary Fund (IMF) on Saturday, April 13, he emphasized the government’s plan to review the Public Utilities Regulatory Commission’s tariff-setting methodology to reduce or eliminate discretion.

He stressed the need for transparency in the formula and process of tariff setting.

“For the Energy Sector, in particular, we have discussed the possibility of ensuring that the shortfall in the sector is reduced. The reforms we are pursuing as well as new ones will continue to be implemented.

“We will, for example, conduct a sector-wide audit of the energy sector, strengthen the implementation of the cash waterfall mechanism, review the PURC tariff setting methodology to reduce or eliminate discretion and also to make the formula and the process of tariff setting more transparent.”

He acknowledged the successes Ghana has achieved but noted that the energy and cocoa sectors require more attention. Regarding the cocoa sector, he assured that the cost-cutting measures being implemented by the Ghana Cocoa Board (COCOBOD) will be closely monitored.

“On the Cocoa sector, we will continue to pay attention to the cost-cutting measures being implemented by Cocobod as well as continue to rationalize the cocoa road sector to make more resources available to complete ongoing road projects.”

He expressed the government’s commitment to the effective implementation of the IMF programme and the assurance of sustained growth and stability of the Ghanaian economy.

“As we forge ahead, we remain committed to the effective implementation of the IMF programme and ensuring sustained growth and stability of the Ghanaian economy. With the support of
all stakeholders, we are confident in our ability to achieve our objectives and build a stronger and more resilient nation,” he said.

On Saturday, April 13, 2024, the IMF released a statement disclosing that it has reached a staff-level agreement on the review of the extended credit facility with Ghana.

 

 Click on the link below to read the joint press conference by IMF-MoF

 

JOINT-PRESS_-IMF_MoF_Final-13.04.2024

 

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