ACCRA, The government of Ghana will soon issue a 2.5 billion US dollar bond to offset the legacy debts of the energy sector in order to create space for increased investment in the sector, says President Nana Addo Dankwa Akufo-Addo, who adds that decision arises from the need to address quickly Ghana’s energy supply constraints by tackling the financial challenges of the sector.

Disclosing this here Wednesday when he opened the 2017 World Bank Development Finance Forum aimed at unlocking private investment in African markets, he said in an effort to revitalise Ghana’s energy sector, the government had encouraged majority Ghanaian private sector participation in the Electricity Company of Ghana (ECG), the main power distributor, under the Millennium Challenge Compact with the United States government.

He informed the forum that the government had reviewed existing Power Purchase Agreements (PPAs) with the aim of moving Ghana from reliance on thermal towards renewable energy, saying; We have thus decided that new PPAs will only be signed for renewable energy.

President Akufo-Addo also stated that the programmes and policies which had been initiated by his government, five months into office, would put the country on a path of fiscal consolidation, debt sustainability and growth.

He said in order to attract private sector investment into Ghana it was instructive to maintain a stable macroeconomic environment in the context of a growing economy. It was for this reason, he said, that his administration had established a macroeconomic framework with policies that sought to restore fiscal discipline and macroeconomic stability.

We have put in place measures to reduce the fiscal deficit bequeathed to us from nine per cent in 2016 to 6.5 per cent this year. Government has created fiscal space by capping earmarked funds to 25 per cent of government revenue, and realigning expenditures to government priorities. This is a policy that successive governments have tried over several years to implement, but were unable to do, he said.

The President said his government has re-oriented fiscal policy from a focus on taxation to a focus on production to boost growth. Furthermore, effective September 1 this year, clearance of goods from Ghana’s ports would be 100 per cent paperless and all internal Customs barriers would be removed to facilitate the movement of goods.