|
Getting your Trinity Audio player ready...
|
Finance Minister Dr. Cassiel Ato Forson has raised the alarm over Ghana’s struggling energy sector, calling it the most pressing economic risk currently confronting the country.
In a post shared on X following a high-level session on the Ghana Energy Compact under Mission 300 at the World Bank headquarters in Washington, D.C., on Tuesday, April 22, Dr. Forson revealed that the energy sector is grappling with a financial shortfall of around $2 billion—an amount he emphasized surpasses Ghana’s entire domestic capital investment.
“During a deep-dive session on the Ghana Energy Compact under Mission 300 at the World Bank yesterday, I reiterated that Ghana’s energy sector is currently the biggest economic risk we face. The sector is burdened with a financial shortfall of approximately $2 billion,” he wrote.
“This amount surpasses our domestic capital expenditure. This challenge goes beyond tariffs. The entire energy value chain requires urgent reform. Inefficiencies, especially in the distribution sector, are being passed onto the ordinary Ghanaian through high tariffs.”
Dr. Forson singled out the Electricity Company of Ghana (ECG) as a major contributor to the sector’s inefficiencies and stressed that addressing operational gaps at ECG could significantly ease the financial burden.
“ECG alone could cut the shortfall by half if it addresses these inefficiencies,” he stated.
To tackle these issues, the minister disclosed that the government has already taken decisive steps, including approving private sector involvement in the energy space. According to him, a Legislative Instrument has been laid before Parliament to enable the competitive procurement of power plants—aimed at improving transparency and long-term viability.
“Cabinet has already approved private sector participation, and we have submitted the Legislative Instrument to Parliament to enable competitive procurement for power plants. These are critical steps toward bringing transparency and sustainability to the sector. The Energy Compact has come at the right time,” Dr. Forson added.
“It has the potential to make a lasting impact, and we are hopeful that the process will not be delayed. Time is of the essence. We must act swiftly to turn this around for the good of our economy and the well-being of our people.”
Dr. Forson’s warning comes just days after Ghana secured a staff-level agreement with the International Monetary Fund (IMF) as part of the fourth review of its bailout programme. The agreement is expected to unlock $370 million in funding, providing much-needed support for Ghana’s ongoing economic recovery efforts.
Email Daily Mail GH: stories@dailymailgh.com or
Whatsapp: +233(0)509928122
