International financial institution the World Bank has approved $260 million in funding to support energy market reforms and access to clean cooking solutions in Ghana.
The funding comprises a $250 million credit from the World Bank’s International Development Association and a $10 million grant from the Energy Sector Management Assistance Program.
Ghana will use the funds to improve revenue generation and address both technical and non-technical losses in electricity distribution. Ghana directs 2% of annual GDP to subsidize electricity distribution, currently constrained and undermined by low revenue collection.
“The operation aims to strengthen revenue collection and improve the quality of energy supply through investments in prepaid metering and in the commercial and meter management systems of distribution utilities,” said Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone.
The funding will help incentivize the cost of stoves and accessories to make clean cooking solutions more accessible in Ghana.
