- The World Bank provides Ghana with $260 million to enhance financial autonomy and reduce state intervention in the energy sector.
- The $250 million loan and $10 million grant will improve revenue collection and operational performance.
- The program increases access to LPG by offering subsidies for stoves and accessories to households and schools.
The World Bank provides $260 million to tackle Ghana’s energy sector revenue crisis. The financial aid aims to reduce state intervention and enhance financial autonomy.
A $250 million loan from the World Bank Group’s International Development Association (IDA) supports the Ghana Energy Sector Recovery Programme (ESRP). An additional $10 million grant comes through the World Bank’s Results-Based Energy Sector Recovery Program (RBCSP).
Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone, stated, “The 4-year initiative aims to strengthen revenue collection and improve energy supply quality.” Investments will target prepayment meters and better commercial and meter management systems for distribution companies.
Ghana’s electricity distribution faces high losses due to low collection rates and below-cost tariffs. This issue forces the government to subsidise the sector by 2% of GDP annually. The World Bank notes these factors weaken the financial and operational performance of the country’s energy utilities.
The $10 million PforR grant aims to cut electricity supply costs by improving production distribution and boosting the performance of distribution services. The ESRP also focuses on clean cooking solutions.
A key component increases access to liquefied petroleum gas (LPG) for households, schools, and businesses. Direct incentives will subsidise the cost of stoves and accessories, excluding cylinders, for early domestic users, commercial caterers, and senior schools. This aims to widen clean cooking access for women, cut health risks from traditional stoves, and improve women’s economic opportunities.
The World Bank’s support is expected to enhance Ghana’s energy sector, easing public financial burdens and promoting sustainable energy solutions.