The International Monetary Fund (IMF) has advised the Ghanaian government to accelerate private sector participation in the Electricity Company of Ghana (ECG), warning that ongoing energy sector inefficiencies pose a threat to public finances and economic stability.

The recommendation followed the final review of Ghana’s Extended Credit Facility program, conducted by an IMF mission in Accra from April 29 to May 15, 2026. The IMF emphasized that safeguarding public resources requires addressing ECG's distribution and collection losses, improving payment discipline, clearing legacy debts, and lowering generation costs.

Economic Progress and Risks

The IMF noted that Ghana’s economic recovery program has led to stabilization, including:

- Rapidly declining inflation.

- Improved foreign reserves and a stronger cedi.

- Better-than-expected economic growth in 2025, driven by broad-based activity and gold exports.

However, the fund warned that sustaining these gains depends on fiscal discipline and continued reforms, particularly as global uncertainties — such as rising energy, food, and fertiliser prices from conflicts in the Middle East — could impact the domestic economy.

Post-Bailout Framework and Institutional Reforms

The IMF and the Ghanaian government have reached a staff-level agreement on a new, non-financing 36-month Policy Coordination Instrument (PCI) to support reforms after the current bailout ends. The PCI will focus on fiscal adjustment, debt sustainability, state-owned enterprise governance, and inclusive growth.

Additionally, the IMF called for greater transparency in quasi-fiscal operations, citing central bank balance sheet vulnerabilities caused by losses from the Domestic Gold Purchase Programme.

The fund also urged structural reforms within the cocoa sector to ensure the long-term sustainability of COCOBOD.