Tariff hike part of IMF conditionalities – Ato Forson

Finance Minister Dr. Cassiel Ato Forson has explained that the recent hikes in electricity and water tariffs are part of Ghana’s ongoing commitments under its deal with the International Monetary Fund (IMF).

The Public Utilities Regulatory Commission (PURC) recently announced a 14.75% increase in electricity tariffs and a 4.02% rise in water charges, both set to take effect from May 3, 2025. These adjustments, according to Dr. Forson, are required to unlock the next tranche of $370 million from the IMF.

Speaking at a press briefing in Accra on Tuesday, April 15, the Minister stated that the adjustments form part of statutory benchmarks that should have been implemented earlier.

“We have begun the implementation, which you recently saw—the quarterly adjustment by PURC, which was supposed to have been done by last year. But we have ensured that it has been done in line with the statutory benchmark as agreed in the third review,” he said.

Addressing rumours of a possible renegotiation of the IMF deal, Dr. Forson stressed that the government has no plans to reopen discussions with the Fund.

“Renegotiating presupposes that you don’t believe in the programme, and so you want to open up the conversation to look at other parameters of the programme. That isn’t the position of the government,” he clarified.

He acknowledged that some targets had been missed under the previous administration but reaffirmed the current government's determination to stay on course with the IMF’s objectives.