The International Monetary Fund (IMF) has backed the Public Utilities Regulatory Commission’s (PURC) recent decision to raise utility tariffs in Ghana. The adjustments include a 14.75% increase in electricity tariffs and a 4.02% rise in water tariffs across all consumer categories.
Stephane Roudet, IMF Mission Chief to Ghana, explained that the tariff hike is a necessary step to improve the financial stability of key State-Owned Enterprises (SOEs), particularly the Electricity Company of Ghana (ECG).
Speaking at a joint press briefing with the Bank of Ghana and Ghana’s Finance Minister, Mr. Roudet stressed the importance of sustainable financing to maintain a reliable power supply throughout the country.
“The importance of this hike is to support SOEs and also ensure their finances are sustainable,” Mr. 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.”
He also highlighted the IMF’s commitment to working with the Ghanaian government to develop social interventions aimed at cushioning the impact of these tariff increases on the most vulnerable populations.
“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.
In defense of the tariff hikes, the PURC insisted that consumers are receiving value for money, despite ongoing complaints about erratic power supply and inconsistent water flow in some areas.