IMF Highlights Financial Struggles of ECG Amid Improved Revenue Collection

The International Monetary Fund (IMF) has reported significant financial challenges facing the Electricity Company of Ghana (ECG), despite recent improvements in revenue collection. The IMF noted that reduced direct government payments to power producers have overshadowed ECG's revenue gains. In early 2025, ECG distributed US$308 million to Independent Power Producers (IPPs), but a US$71 million increase in net payables has pushed the company's total debts to a staggering US$1.2 billion. Although ECG's bill coverage improved dramatically from 11% to 48%, the government is projected to face a shortfall exceeding US$500 million in 2025. To address these legacy debts, ECG has reached an agreement with nine IPPs for creditor haircuts and upfront payments. Furthermore, the 2026 Budget has allocated GH¢15 billion to cover anticipated shortfalls and debt repayments. The IMF emphasized that while the current measures have positively impacted ECG's financial trajectory, further actions are essential to ensure the company's long-term sustainability and to mitigate associated fiscal risks.