The International Monetary Fund (IMF) has pushed Ghana to fast-track private sector participation in the operations of the Electricity Company of Ghana (ECG), warning that deep problems in the energy sector continue to threaten public finances and economic stability.

The call formed part of discussions between an IMF staff team led by Ruben Atoyan and Ghanaian authorities during a mission to Accra from April 29 to May 15 for the sixth and final review of Ghana’s Extended Credit Facility programme.

In a statement issued at the end of the mission on Friday, the IMF said protecting public resources would require stronger reforms in both the energy and cocoa sectors.

“In the energy sector, priority should be given to tackling distribution and collection losses at the Electricity Company of Ghana (ECG), including by finalising the private sector participation in the distribution sector, enhancing payment discipline, clearing legacy arrears, and reducing generation costs,” the IMF stated.

The Fund’s latest intervention comes amid persistent concerns over ECG’s operational inefficiencies, mounting debts and revenue collection challenges.

The IMF acknowledged that Ghana’s economic recovery programme had delivered “substantial stabilisation gains,” with inflation declining rapidly, reserves improving and confidence in the cedi strengthening.

It also noted that fiscal performance had improved significantly, while economic growth exceeded expectations in 2025 due to broad-based activity and strong gold export earnings.

However, the IMF warned that sustaining the recovery would depend heavily on continued reforms and fiscal discipline.

“The global environment remains uncertain,” the Fund said, adding that rising energy, food and fertiliser prices linked to the war in the Middle East could still affect Ghana’s economy.

The IMF also revealed that it had reached staff-level agreement with the government on a new non-financing 36-month Policy Coordination Instrument (PCI) to support reforms after the current bailout programme ends.

According to the Fund, the new arrangement will focus on sustaining fiscal adjustment, safeguarding debt sustainability, strengthening governance of state-owned enterprises and supporting inclusive growth.

The IMF further stressed the need for transparency in quasi-fiscal operations, particularly at the Bank of Ghana.

It said losses linked to the Domestic Gold Purchase Programme highlighted the dangers of quasi-fiscal activities weakening the central bank’s balance sheet.

The Fund also urged Ghana to strengthen reforms in the cocoa sector to improve efficiency and ensure the long-term sustainability of COCOBOD.

Despite the concerns, the IMF praised Ghana’s progress under the programme and commended the “resilience and determination of the Ghanaian people.”

But it warned that avoiding “past policy slippages” would be critical to preserving the gains made so far.