Ghana: Energy challenges could jeopardize foreign direct investments – World Bank cautions
Ghana has been cautioned by the World Bank about the looming risks of financial challenges and potential loss of Foreign Direct Investment (FDI) inflows unless urgent measures are taken to address the country’s pressing energy challenges.
Ms Anna Bjerde, the Managing Director of Operations at the World Bank, stressed the critical need for Ghana to implement a comprehensive action plan to tackle issues surrounding metering, billing, and revenue collection within the energy sector.
Speaking at a press conference, Ms Bjerde emphasized that the World Bank stands ready to provide technical support to the Ghanaian government and other stakeholders to avert a downward spiral in the sector. She underscored the importance of uninterrupted progress in resolving metering, billing, and collection challenges and ensuring that revenue is appropriately allocated to the intended sources.
Ms Bjerde urged the government to demonstrate proactive leadership in addressing these issues promptly, thereby mitigating the current challenges faced by the sector.
Furthermore, the World Bank expressed its commitment to supporting Ghana’s budget, with a particular focus on bolstering the energy sector. Ms Bjerde acknowledged that while Ghana’s challenges are not unique, their gravity necessitates immediate attention to prevent further deterioration.
She emphasized the World Bank’s strong desire to collaborate with the Ghanaian government to ensure that the energy sector is well-positioned to meet its objectives.
Notably, the World Bank has previously identified Ghana’s energy sector debt as a significant contributing factor to the country’s overall debt burden. The institution has flagged various factors driving the country’s debt situation, emphasizing the need for prompt and decisive action.
Ghana is urged to take swift and resolute action to address its energy challenges, as failure to do so could have far-reaching consequences, including financial difficulties and a potential decline in FDI inflows.
The World Bank aims to provide comprehensive support to the Ghanaian government through technical assistance and financial resources, with the aim of revitalizing the energy sector and ensuring its long-term sustainability.
