World Bank approves $260m for Ghana's energy sector recovery

The World Bank has approved a $250 million credit from the International Development Association (IDA) and a $10 million grant from the Energy Sector Management Assistance Programme to support Ghana's four-year Energy Sector Recovery Programme for Results (PforR).

This initiative aims to enhance the financial viability of electricity distribution and increase access to clean cooking solutions.

Ghana faces high

Read full articleelectricity distribution losses due to low collection rates and below-cost recovery tariffs, impacting the financial health of energy utilities. To cover these deficits, the government allocates about 2% of GDP annually.

"The World Bank is committed to supporting Ghana's energy sector recovery and financial sustainability through results-based financing," stated Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. The PforR will invest in prepaid metering and commercial meter management systems to strengthen revenue collection and improve energy supply quality.

Additionally, the programme will increase access to Liquefied Petroleum Gas for households, schools, and businesses, promoting clean cooking solutions and improving health outcomes, particularly for women.

The PforR complements ongoing regulatory and policy reforms supported by the World Bank's Development Policy Finance series and the IMF's Extended Credit Facility Programme for Ghana.