## Ghana's Energy Sector: From Fiscal Vulnerability to a Platform for Sustained Growth

_Selected Issues Papers, August 7, 2026_

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## Bibliographic details
- Authors: Valerio Crispolti
- Published: August 7, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229056366.018

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### Overview and Context
- Author: Valerio Crispolti
- Date: August 7, 2026
- Format: Selected Issues Papers, 2026, 086 (2026)
- Pages: 21
- DOI: https://doi.org/10.5089/9798229056366.018
- Series: Selected Issues Paper No. 2026/086
- Stock No: SIPEA2026086
- ISBN: 9798229056366
- ISSN: 2958-7875
- Subject areas: Commodities, Economic sectors, Electricity, Energy sector, Financial sector, Tariffs, Taxes
- Keywords: Electricity, energy sector, Financial sector, fiscal risks, Global, IMF country, IMF program, IMF staff, issues paper, power sector reform., sector shortfall, Tariffs, West Africa

### Key Findings
- Ghana's energy sector is central to industrialization and inclusive growth.
- Persistent tariff, distribution, and collection gaps have made the sector a source of fiscal risk.
- Sector shortfalls and arrears to power producers and fuel suppliers require government transfers, weaken fiscal buffers, and undermine reliability.
- Recent reforms, supported by an IMF program, have helped stabilize conditions by:
  - resuming periodic tariff adjustments,
  - strengthening Cash Waterfall Mechanism implementation,
  - reducing arrears.
- Vulnerabilities remain despite recent stabilization.

### Analysis of Vulnerabilities
- Fiscal risks stem from tariff, distribution, and collection gaps.
- Arrears to power producers and fuel suppliers create ongoing requirements for government transfers.
- Weak fiscal buffers and unreliable electricity supply are consequences of sector shortfalls.

### Policy Recommendations and Required Reforms
- Disciplined tariff-setting.
- Payment enforcement.
- Arrears clearance.
- Lower losses (distribution losses).
- Private distribution participation.
- Transparent procurement.
- Stronger governance to support investment and reliable electricity supply.

### Implications for Growth and Fiscal Sustainability
- Durable progress in the energy sector is necessary to support industrialization and inclusive growth.
- Implementing recommended reforms would reduce fiscal risks, preserve fiscal buffers, and improve electricity reliability, thereby supporting sustained growth.

*Source: "Ghana's Energy Sector: From Fiscal Vulnerability to a Platform for Sustained Growth", Selected Issues Papers 2026, 086 (2026), Valerio Crispolti, August 7, 2026.*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/08/07/ghana-s-energy-sector-from-fiscal-vulnerability-to-a-platform-for-sustained-growth-578684_