US Lawmaker Calls on IMF to Tie Ghana’s Next Disbursement to Power Sector Debt Repayments
The Chairman of the US House Foreign Affairs Committee, Brian Mast, has urged the International Monetary Fund (IMF) to ring-fence part of Ghana’s next bailout disbursement for clearing arrears owed to independent power producers (IPPs), including facilities backed by US pension funds and taxpayers.
In a letter to US Treasury Secretary Scott Bessent, Mast expressed concern over Ghana’s continued failure to honour financial obligations under its $3bn IMF programme, warning that persistent arrears could destabilise the country’s power sector and erode investor confidence.
“I now recommend that the United States Executive Director to the IMF, once appointed and confirmed, formally request that a specific portion of the next IMF disbursement to Ghana be explicitly directed towards settling outstanding payments owed to the IPPs,” Mast wrote.
The intervention comes amid mounting frustration over Ghana’s ballooning energy sector debts, which have left power producers struggling with liquidity constraints.
Investor Concerns and Partial Payments
Recent payments by the state-owned Electricity Company of Ghana (ECG) to US-affiliated IPPs, Twin City Energy and Early Power Ltd., have done little to ease tensions. Each company received $5.5mn, below the expected $7.5mn, and payments were made in Ghanaian cedis rather than US dollars—a move that has further complicated financial planning for investors.
Ghana’s power sector has long been burdened by a structural mismatch between revenue collection and payments to producers, with mounting arrears posing a threat to supply reliability. The government has sought to restructure these debts, but payment delays continue to weigh on private sector confidence.
Mahama’s Economic Proposals Face Scrutiny
Mast’s letter also referenced a recent economic briefing from former President John Mahama’s advisory team, which outlined priorities such as:
Rebuilding foreign exchange reserves
Ring-fencing critical funds
Refinancing government obligations
However, Mast questioned the government’s commitment to resolving the IPP debt crisis, arguing that proposed solutions remained “mere talking points”. He suggested that the administration’s push to bolster reserves could come at the expense of overdue payments to energy providers.
“President Mahama does not appear to be listening to his advisers, as proposed solutions – like ring-fencing – remain mere talking points,” he stated.
IMF Review Looms as Pressure Mounts
The IMF’s next programme review is scheduled for April, ahead of a potential board meeting in June. Mast’s push to condition further IMF support on energy sector reforms reflects broader concerns in Washington over Ghana’s fiscal discipline and debt restructuring strategy.
US legislators have previously raised concerns about Ghana’s economic trajectory, with calls in the 118th US Congress for IMF support to be tied to settling IPP arrears.
As Ghana navigates its economic recovery efforts, pressure from international stakeholders suggests that clearing energy sector liabilities will be critical to restoring investor confidence and ensuring the sustainability of power supply.
