Pianim: Rejig energy sector
Renowned economist Kwame Pianim has called on government to outline a clear policy for the country's energy sector to win over investors.
The 2016 Public Interest and Accountability Committee (PIAC) report had warned that the troubles confronting Ghana’s energy sector may deepen soon if the huge debts in the sector are not settled.
PIAC argued that the debt owed particularly by the Volta River Authority (VRA) greatly affected operations for 2016 considering declining global oil prices.
But in an interview with Class Business, Mr Pianim maintained that investors would shy away from the sector if government failed to restructure the industry.
“If you have a plan, you know what to do and you make sure that every player in the sector gets a fair risk adjusted rate of return on their investment. Because we don’t have the money in Ghana to pay for our infrastructure, then we will be able to attract investors to be able to come in and build your roads, build your ports from the Build Operate Transfer (BOT). But you need to have first of all a plan and then direct investors into areas that you want them to collaborate with you on,” he stated.
He added: “Micro-economic stability is important because if you don’t have micro economic stability, because these tariffs are fixed relatively in dollars, then you will need more and more cedis to pay.”