Ghana's energy sector is grappling with arrears amounting to $1.6 billion, equivalent to 2.3 percent of the Gross Domestic Product (GDP) as of the close of 2022, according to recent findings.The International Monetary Fund (IMF) has expressed further apprehension, revealing that non-energy sector arrears reached approximately GH¢35 billion, constituting 5.8% of the GDP.

In its 2023 Article IV Consultation, the IMF disclosed that the government persistently accrued payables in the initial half of 2023, surpassing the related program indicative target (IT).The Bretton Wood institution highlighted the government's accumulation of substantial arrears in recent years, with a stock-taking exercise conducted by authorities indicating an overall arrear stock at the end of 2022 largely aligning with initial program assumptions.

The report underscored a decline in non-energy sector payables, contrasting with a surge in energy sector payables attributed to low recoveries, stringent financing conditions, and pending negotiations with Independent Power Producers (IPPs).While energy sector payables are solely monitored under the Indicative Target, the IMF emphasized that adjusting the primary balance to accommodate the accumulation of energy sector payables during the first half of 2023 would still result in outperformance of the end-June primary balance target.