Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has defended the latest utility tariff hikes as an unavoidable step tied to Ghana’s agreement with the International Monetary Fund (IMF), clarifying that the move is crucial to unlocking a $370 million bailout tranche.
The Public Utilities Regulatory Commission (PURC) recently announced a 14.75% hike in electricity tariffs and a 4.02% increase in water charges, effective May 3, 2025—a move that has sparked public concern amid existing economic pressures.
Addressing the media on Tuesday, April 15, Dr. Ato Forson explained that the adjustments form part of Ghana’s structural commitments under the IMF programme, and are essential for ensuring continued financial support from the Fund.
“We have begun the implementation, which you recently saw—the quarterly adjustment by PURC. This was supposed to have taken effect last year. We’ve now made sure it aligns with the agreed benchmarks from the IMF’s third review,” he said.
The Finance Minister emphasized that while the increases are difficult, they are a necessary step toward stabilizing Ghana’s economy, restoring investor confidence, and securing vital external funding.
He further dismissed rumors of any intention to renegotiate the deal with the IMF, stating categorically:
“Renegotiating presupposes that you don’t believe in the programme. That is not our position. The government is fully committed to the programme’s implementation and the objectives it seeks to achieve.”
Acknowledging that some performance benchmarks were missed prior to the current administration assuming office, Dr. Forson stressed that his team is focused on restoring fiscal credibility and rebuilding the economy through disciplined execution of the IMF-backed recovery plan.
As Ghanaians brace for the impact of the new tariffs, the government is urging the public to view the adjustments as short-term sacrifices for long-term economic recovery.
