Enhance power sector governance to handle energy challenges – IMF to Ghana  

The Worldwide Financial Fund (IMF) has urged Ghana’s authorities to enhance the nation’s power sector governance structure to handle the challenges which have contributed to latest irregular electrical energy provide.  

Dr Mohammed Amin Adam, Finance Minister, not too long ago mentioned that Ghana’s power sector has a financing hole of about US$1.9 billion.  

He has since known as for personal sector funding within the power sector, assuring that the federal government had set it up for profitability.  

“Progress has been made in growing transparency and in addressing the sector’s shortfall – together with by implementing tariff will increase, however extra must be performed to enhance governance and cut back technical and industrial losses,” the IMF mentioned.   

The Fund mentioned in a correspondence with the Ghana Information Company that the power sector remained important to Ghana’s economic system, with present energy disruptions “undoubtedly affecting many individuals’s lives.”  

In response to the GNA’s inquiries, the Fund emphasised the importance of enhancing the power sector’s governance framework, notably addressing technical and industrial losses.  

It mentioned that underneath its present US$3 billion Prolonged Credit score Facility (ECF) programme with Ghana, the Fund, in partnership with the World Financial institution, is supporting the federal government in implementing reforms within the sector.   

“These reforms will take time, and we stay dedicated to working with the federal government to assist construct a extra sustainable and resilient power sector for Ghana’s future,” the Spokesperson, mentioned.   

In an interview with GNA, Nana Amoasi VII, Govt Director, Institute of Power Safety (IES), mentioned the decision by the Fund signified the necessity for enhanced transparency, accountability, effectivity, and effectiveness in managing and regulating the power sector.   

He mentioned the IMF’s name additionally highlighted issues about Ghana’s power sector’s monetary instability, notably within the energy sub-sector, which is influenced by points equivalent to debt mismanagement, low income technology, and financial indiscipline.  

Nana Amoasi VII recommended that these issues be addressed by a complete technique that features legislative and coverage reforms, stakeholder collaboration, monitoring and analysis, public consciousness, and know-how innovation.  

“It’s equally essential to contemplate strengthening regulatory establishments and guaranteeing coverage consistency and coherence. We additionally can’t overlook the monetary administration and sustainability of the sector,” he mentioned.   

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