The International Monetary Fund (IMF) has publicly supported Ghana’s decision to increase utility tariffs, describing the move as a necessary step toward stabilizing the country’s struggling energy sector and ensuring the financial health of key state-owned enterprises (SOEs).
In a joint press briefing held with the Bank of Ghana and Ghana’s Ministry of Finance, IMF Mission Chief to Ghana, Stephane Roudet, stated that the recent tariff adjustments, comprising a 14.75% hike in electricity prices and a 4.02% increase in water tariffs across all consumer categories, are essential to improving the operations of major utility companies, especially the Electricity Company of Ghana (ECG).
Roudet explained that the sustainability of the energy sector hinges on ECG’s ability to meet its financial obligations to power producers and maintain a consistent power supply.
He emphasized that while the IMF recognizes the challenges the increases may pose for ordinary Ghanaians, especially vulnerable groups, the long-term benefits of a financially sound energy sector outweigh the short-term discomfort.
“The importance of this hike is to support SOEs and also ensure their finances are sustainable,” Roudet noted.
“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 Ghanaians.”
The IMF also reiterated its commitment to working closely with the Ghanaian government to implement targeted social interventions that will cushion the impact of the new tariffs on low-income households.
Roudet assured the public that the fund remains mindful of protecting the poor and ensuring inclusive growth.
“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 Public Utilities Regulatory Commission (PURC), which implemented the new tariff structure, has also defended the decision.
Despite complaints from consumers over ongoing power outages and water supply issues, PURC insists that the increases are grounded in the economic realities facing the utility sector and are meant to ensure consumers receive improved service shortly.
The tariff hike comes amid Ghana’s efforts to meet structural benchmarks under its three-year, $3 billion IMF-backed Extended Credit Facility program.
Ensuring the viability of state-owned enterprises, especially those in the energy sector, is a key part of the government’s broader fiscal consolidation and reform agenda.
As Ghana navigates its economic recovery, both the government and its international partners appear aligned on the need for tough but necessary reforms, including those that directly affect consumers, to build a resilient and reliable utility infrastructure.
