Finance Minister Dr. Cassiel Ato Forson has acknowledged that fiscal risks in Ghana’s energy sector remain a major challenge, despite ongoing reforms aimed at stabilizing the economy.
Speaking at a joint press conference with the Bank of Ghana and the International Monetary Fund (IMF) on April 15, Dr. Forson said the government is taking decisive steps to address these issues and reaffirmed his commitment to leading the reform agenda.
He noted that the operationalization of the single account mechanism and the enforcement of the Cash Waterfall Mechanism are key interventions aimed at ensuring timely payments to Independent Power Producers (IPPs), a critical step toward eliminating energy sector shortfalls. He assured stakeholders that the government is determined to implement all commitments under the IMF-supported program.
Dr. Forson announced that Ghana has reached a Staff-Level Agreement with the IMF on the fourth review of the program. Once approved by the IMF Board, this will trigger the release of the fifth tranche of US$370 million, bringing total disbursements to US$2.3 billion.
He emphasized the government’s broader efforts to restore macroeconomic stability, including auditing outstanding government payables, amending the Public Financial Management Act to introduce fiscal rules and an independent fiscal council, and strengthening compliance through new oversight mechanisms. He also mentioned that 549 public sector spending units have been migrated onto the GIFMIS platform to improve transparency and accountability.
While admitting that several structural benchmarks were missed before the current administration assumed office, the Finance Minister said his team has made significant progress in reversing the situation and even implemented some reforms ahead of schedule. He expressed gratitude to the IMF mission team and the Ghanaian people for their support and sacrifices.
Dr. Forson concluded by reiterating the government’s commitment to the program and its objectives, promising that the path to recovery, though challenging, remains firmly on track.
