Incoming government to encounter significant power sector crisis - Financial analyst predicts

Ghana’s energy sector is expected to experience some hurdles for the forthcoming government if the existing challenges are not resolved.

This is the forecast by financial analyst, Kofi Arkaah, who has expressed concern over the growing debts in the energy sector and its effect on the general economy and provision of power supply.

Speaking on Citi TV’s Point of View segment, Kofi Arkaah predicted that the next administration will likely experience significant challenges in key sectors of the economy, particularly the energy sector.

“Look at what is happening in the energy sector; our debts have skyrocketed. Whoever comes in as the next administration is going to face a major challenge in the energy sector and other sectors. I mean labour, education, the financial sector. I speak to a lot of people, and due to the way the economy was managed, there’s hardly any activity,” the financial analyst expressed.

Kofi Arkaah, however, proposed that the incoming government, when given the nod in the general election, must adopt measures aimed at reducing Treasury bill rates after the elections on the back of projected high expenditure for the period.

“We are in the process of stabilizing the economy, but we are also in an election year, so the election year is going to be spending, and it’s all about what happens post-election. Post-election, the new administration coming in will they make a significant strategic decision to work on that T bill rate and bring that Treasury bill down?

The way to do it is to do it in tandem with stabilizing your currency through the optimal reserve ratio and bringing down inflation, by curbing excessive spending, excessive spending is still going on, we will see what happens with the next administration,” Kofi Arkaah explained.

Many Ghanaian homes across the country have been experiencing persistent power supply cuts also known as “dumsor”.

NOQ

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