Ghana: IMF Backs Hikes In Electricity, Water Tariffs For Q2

The International Monetary Fund (IMF) has endorsed the recent increases in electricity and water utilities tariffs in Ghana, which is expected to take effect from May 3, 2025.

According to Stephane Roudet, IMF Mission Chief to Ghana, the tariff hike is a necessary step to strengthen the financial state of key State-Owned Enterprises (SOEs), especially the Electricity Company of Ghana (ECG).

Ghana signed onto the International Monetary Fund (IMF) program to restore macroeconomic stability and debt sustainability while laying the foundation for stronger growth.

The IMF’s Extended Credit Facility (ECF) arrangement, worth $3 billion over 36 months, was approved on May 17, 2023.

It would be recalled that on Friday, April 11, 2025, reported that Public Utilities Regulatory Commission (PURC) has announced a 14.75% increase in electricity tariffs and a 4.02% rise in water tariffs across all consumer categories effective, May 3.

Since this announcement section of Ghanaian have raised concerns about the impact of the increment on their businesses and living conditions.

However, addressing a joint press conference in Accra, capital of Ghana, with the Bank of Ghana and Ghana’s Finance Minister, Mr. Roudet emphasised the need for sustainable financing to maintain a reliable power supply across the country.

“The importance of this hike is to support SOEs and also ensure their finances are sustainable,” Roudet said.

“We are aware of the implications, especially for the vulnerable, but it is necessary to ensure ECG can meet its financial obligations to power producers and guarantee uninterrupted electricity for Ghanaian s”, he mentioned.

He also reiterated the IMF’s commitment to working with the Ghanaian government to develop social interventions aimed at cushioning the impact of these adjustments on the most vulnerable populations.

“We are very mindful of the needs of the vulnerable in society and want to ensure the government implements policies to protect the poor while improving the conditions of workers across all sectors,” he added.

The PURC earlier also defended the recent increases in utility tariffs, insisting that consumers are receiving value for money despite persistent complaints over erratic power supply and inconsistent water flow in parts of the country.

Source:https://energynewsafrica.com