World Bank praises Ghana economy but warns over energy sector risks
The World Bank has praised Ghana’s economic performance in the face of global headwinds, describing the country’s recovery as resilient, but has cautioned that unresolved challenges in the energy sector could threaten the sustainability of recent gains.
The assessment was delivered by the Managing Director for Operations at the World Bank, Anna Bjerde, following a closed-door meeting with Ghana’s Finance Minister, Cassiel Ato Forson, on the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington, D.C.
In a statement issued after the meeting, Ms Bjerde commended the government’s economic management, citing prudent policy choices, ongoing reforms and the rebuilding of fiscal buffers as key drivers of Ghana’s recent stability.
However, she warned that inefficiencies in the energy distribution system remain a major risk, stressing that failure to address them could undermine broader macroeconomic progress.
Ms Bjerde assured that the World Bank would continue to support Ghana’s reform agenda, including offering technical assistance to help restructure the energy sector and improve its operational and financial performance.
She further described Ghana as a critical partner in the sub-region and expressed confidence in its medium-term outlook, provided that structural weaknesses, particularly in the power sector, are addressed decisively.
During the engagement, Dr Forson outlined measures being taken by the government to sustain the recovery, noting that increased domestic gas production had helped cushion the impact of rising global energy prices.
He acknowledged, however, that persistent inefficiencies in billing, revenue collection and power distribution continue to pose risks to the sector and could weigh on the broader economy if not resolved.
“We are committed to ensuring that the energy sector does not become a drag on our recovery. Private sector involvement, done right, will bring the discipline and investment needed,” Dr Forson told the World Bank team.
The Minister indicated that the government is moving to introduce private sector participation across the energy value chain as part of efforts to improve efficiency and attract investment.
The IMF/World Bank Spring Meetings, which bring together global financial leaders, central bank governors and policymakers, are expected to continue through the week, with Ghana’s delegation holding further engagements aimed at consolidating the country’s economic recovery.
