The International Monetary Fund (IMF) has appealed to the government of Ghana to fix its electricity challenges since the country’s short term economic growth will depend on a reliable energy sector.
According to a report released by the group today, the country’s external income sources will also depend on the reported weaker cocoa harvest and recovery in gold production.
A new decline in commodity prices (oil, cocoa and gold) is expected to weigh on the fiscal and external balances of the government’s budget.
While fiscal consolidation is said to be on track, tighter conditions on the domestic securities market may pose financing risks for the budget.
Conditions on international capital markets may also become less favorable, following the expected tightening of the US monetary policy.
Ghana has gone for a 918 million US dollar bailout from the IMF and a steady implementation of the program should attenuate these risks beyond 2015.
The IMF, however, fears a Tribunal over oil-related operations in a disputed area between Ghana and Ivory Coast may impact oil production in the medium-to-long run.
Ghana is equally resolute the country has a good case and defense, hence will secure a favorable ruling.
segefial@yahoo.com
