Ghana can fix its energy sector without IMF, World Bank – PUWU

The Public Utilities Workers Union (PUWU) says Ghana has the capacity to resolve its energy sector challenges without relying heavily on the International Monetary Fund (IMF) and the World Bank. Deputy General Secretary of PUWU, Enoch Paul Hayes, believes the focus should instead be on addressing structural problems within the power sector, particularly the cost of power generation and existing agreements with Independent Power Producers (IPPs). Speaking on Joy FM’s PM Express on Tuesday, Mr Hayes questioned why the pricing of power supplied by IPPs was not receiving enough attention.

“They are saying that there are issues, and the issues are not where you are trying to tackle, but the issues are really in places where it’s a matter of concern. For example, the generation: we have IPPs and their pricing. Why is that not a concern?” he asked.

His comments come amid renewed pressure to reform Ghana’s energy sector. The IMF estimates that the sector could record a financing shortfall of about US$1.1 billion in 2026, largely due to high collection and distribution losses and costly generation contracts. The Fund has also backed continued quarterly adjustments to electricity tariffs and greater private-sector participation in power distribution.

The World Bank, meanwhile, has warned that delays in energy-sector reforms could threaten Ghana’s recent gains in debt sustainability and macroeconomic stability. But Mr Hayes argues that Ghana must be more confident in its ability to solve its own problems. We don’t always need to rely on the IMF.

The IMF is not Father Christmas,” he said. He cited the experience of other African countries as a reason for Ghana to carefully assess external prescriptions for the energy sector. “We understand sometimes where the IMF want to come in.

But for some time, let’s look at our economy in this part of Africa, especially the energy sector, which they normally want to enter. Whatever they said they were trying to do there has worsened the whole situation. The examples are there.” Mr Hayes also pointed to what he described as Ghana’s own ability to turn around struggling state institutions.