Ghana has signed a $260 million Energy Sector Recovery Programme facility with the World Bank, aiming to strengthen financial stability and modernize the nation’s energy sector. The agreement, signed during the IMF/World Bank Annual Meetings in Washington, DC, includes $250 million in credit and a $10 million grant. The funds will support prepaid metering and commercial meter management to improve revenue collection and ensure a reliable energy supply.
Finance Minister Dr. Mohammed Amin Adam, who signed on behalf of Ghana, highlighted the significance of the results-based financing, describing it as a sustainable means to address the energy sector’s critical challenges. He noted the financial strain Ghana has faced this year, spending nearly 18 billion cedis to cover energy shortfalls, a level he emphasized is “no longer sustainable.” With the nation’s economy on a path to recovery, Dr. Amin Adam sees the facility as well-timed to revitalize Ghana’s energy industry.
The program is backed by a $250 million credit from the International Development Association (IDA) and a $10 million grant from the Energy Sector Management Assistance Program (ESMAP), both World Bank affiliates. The World Bank’s four-year Ghana Energy Sector Recovery Programme for Results (PforR) focuses on enhancing electricity distribution’s financial sustainability and promoting clean cooking solutions. Direct financing will also be provided to utilities for capital expenditure, complementing policy reforms and the IMF’s Extended Credit Facility to promote sustainable growth.
The World Bank’s Country Director for Ghana, Robert Taliercio O’Brien, underscored the organization’s dedication to supporting Ghana’s energy sector, emphasizing that the facility is designed to tackle current challenges while providing lasting benefits for the nation’s economy and its citizens.
