Minister for Finance Mr. Ken Ofori-Atta has reiterated government’s plans to prioritize the energy sector as part of a comprehensive host of structural reforms aimed at driving Ghana’s economic growth and development.
Addressing journalists in the first of a series of press conference on Ghana’s International Monetary Fund (IMF) programme and Growth Agenda, Minister Ofori-Atta Ofori-Atta emphasized the crucial role of the energy sector and reaffirmed the government’s commitment to implementing necessary reforms to ensure its efficiency and sustainability.
“We are committed to addressing the challenges in the energy sector head-on. The comprehensive reforms outlined in the Energy Sector Recovery Plan are aimed at reducing losses and improving financial stability within the sector. Our goal is to create a sustainable and efficient energy sector that supports Ghana’s overall growth agenda,” he said.
With legacy debt reaching a staggering US$2 billion by the end of 2022, coupled with an estimated shortfall of US$5.9 billion between 2023 and 2025, the country’s energy sector has been in dire need of reforms to serve the over 30 billion Ghanaian population.
To tackle these energy sector problems, the Minister said an updated Energy Sector Recovery Plan (ESRP) is being developed and is set to be approved by the end of June 2023 highlighting the incorporation of key reforms into the ESRP to alleviate the financial burden and foster sustainability.
As part of these reforms, he said government will operationalize a framework for granting energy sector subsidies, implementation of an inter-utility debt settlement framework on a quarterly basis starting from June 2023, and establish a mechanism to enforce the guidelines of the Cash Waterfall Mechanism (CWM) and Natural Gas Clearinghouse (NGC) by the end of June 2023.
He said these measures would contribute to reducing the estimated financial shortfall by at least US$2.95 billion over the period from 2023 to 2025 by streamlining financial processes, enhance transparency, and improve cash flow management within the sector.
Mr. Ofori-Atta explained that as the country continues to pursue its IMF programme and Growth Agenda, these energy sector reforms serve as a crucial step towards achieving a sustainable and thriving energy sector that benefits the entire nation.
He said government will continue to put appropriate measures in place that will see to the long-term stability of critical sectors of the economy such as the energy sector.
The Minister also called for an all-hands-on-deck approach in implementing Ghana’s reform programme as outlined in government Post Covid Programme for Economic Growth (PC-PEG). He pointed out that despite the progress made since securing the $3billion IMF bailout, the success of Ghana’s economic recovery as highlighted in the PC-PEG programme hinges on the commitment and dedication of every citizen.
This, he acknowledged the resilience and determination of the Ghanaian people in the face of economic challenges expressing his confidence in the ability to collectively rebuild the country through the successful implementation of the economic reforms entreating the country to forge ahead in unity.
