Minister of Finance, Dr. Amin Adam, announced that the government will conduct a comprehensive audit of the energy sector, aligning with Ghana’s current IMF-supported program.
He emphasized the importance of this audit to ensure regulatory compliance and improve the implementation of the cash waterfall mechanism, aimed at minimizing financial shortfalls.
During a joint press conference involving the IMF, Bank of Ghana, and Finance Ministry on April 13, the finance minister stated that the government will also reassess the tariff-setting methodology of the Public Utilities Regulatory Commission (PURC) to minimize or eliminate discretionary practices.
He underscored the significance of enhancing transparency in the tariff-setting process and formula.
“For the energy sector, in particular, we have discussed the possibility of ensuring that the shortfall in the sector is reduced. The reforms we are pursuing as well as new ones will continue to be implemented.
“We will, for example, conduct a sector-wide audit of the energy sector, strengthen the implementation of the cash waterfall mechanism, review the PURC tariff setting methodology to reduce or eliminate discretion and also to make the formula and the process of tariff setting more transparent,” the finance minister said.
Regarding the cocoa sector, Dr. Amin Adam mentioned that the government will persist in overseeing COCOBOD’s cost-cutting reforms designed to enhance the sustainability of the cocoa regulator.
“On the cocoa sector, we will continue to pay attention to the cost-cutting measures being implemented by COCOBOD as well as continue to rationalise the cocoa road sector to make more resources available to complete ongoing road projects,” Dr Amin Adam said.
The finance minister affirmed the government’s dedication to executing the IMF-ECF program without deviation, even amidst an election year.
He emphasized that the government’s objective is to reestablish macroeconomic stability and ensure the economy returns to a solid foundation.