Ghana is poised to enhance its development goals and energy sector reforms following a recent high-profile meeting in Washington, DC, between Ghana’s Minister for Finance, Dr Mohammed Amin Adam, and the Millennium Challenge Corporation (MCC).
The discussions, also attended by Michael Asare Bediako, CEO of the Millennium Development Authority (MiDA), centered on Ghana’s progress under the previous compacts and future collaboration potential to drive economic growth and poverty alleviation.
This meeting addressed the achievements and challenges of Ghana’s Compact II, which focused on stabilising the country’s energy infrastructure and promoting sustainability within the Electricity Company of Ghana (ECG). With Compact II ended, the MCC and Ghana’s representatives explored areas for continued partnership in alignment with Ghana’s evolving economic goals.
As a critical next step, Ghana established the MiDA MCC Taskforce to ensure momentum leading up to the MCC Board meeting in December 2024, where new proposals will be discussed. The task force, split into two main groups, has defined scopes to build on Compact II’s foundation and identify new areas for MCC investment.
Scope of Taskforce I
Taskforce I will review the government’s progress in sustaining MCC’s previous investments in Ghana’s energy sector. It will focus on assessing operational improvements at ECG, analysing revenue shortfalls, and evaluating tariff structures critical for financial stability. Specific goals include summarizing Compact II’s outcomes, addressing lessons from previous concession agreements, and exploring private sector re-engagement in the energy sector.
Scope of Taskforce II
Taskforce II will propose strategic focus areas for a prospective MCC Compact. Its mission is to identify primary economic constraints and craft sector interventions that align with Ghana’s development objectives, particularly in agriculture, digitalization, and tourism. This task force’s findings will lay the groundwork for a new compact proposal designed to accelerate economic growth and reduce poverty.
The MiDA MCC Taskforce will submit a comprehensive report and recommendations by November 15, 2024. This report is anticipated to play a vital role in supporting Ghana’s case for continued MCC engagement during the December board discussions.
