The World Bank has issued a warning to Ghana, alerting the country to potential financial challenges and the risk of losing Foreign Direct Investment (FDI) inflows if it fails to implement a critical action plan to address its current energy challenges.
In a Press Conference, Anna Bjerde, the Managing Director of Operations at the World Bank, emphasized the urgent need for proactive measures in resolving issues related to metering, billing, and revenue collection within the energy sector.
She stated that addressing these problems without interruption is crucial to saving the sector from further deterioration.
“There has been over the last years a deterioration in the performance of the energy sector particularly in the financial performance and we trying to help with metering, billing, and collection,” Bjerde said.
Furthermore, Bjerde stressed the importance of channelling revenue collected from the energy sector to its right sources. She called on the government to be proactive in addressing these challenges to avoid exacerbating the current situation.
To assist in resolving these issues, the World Bank has pledged to provide technical support to the government and other stakeholders. Bjerde also mentioned that the World Bank would support Ghana's budget, especially in the energy sector, to help improve its performance.
While the problems facing Ghana's energy sector are not unique to the country, the World Bank emphasized their seriousness and the need for immediate attention to prevent further deterioration.
The World Bank had previously identified Ghana's energy sector debt as a significant contributor to the country's overall debt situation. The institution highlighted certain factors driving the debt burden in the country.