Energy Sector Remains Our Biggest Economic Risk – Finance Minister
Dr. Cassiel Ato Forson, the Minister for Finance, has described the energy sector as the biggest economic threat currently facing the country.
He warned that the sector was grappling with a financial shortfall of approximately $2 billion annually.
The Minister was speaking during a deep-dive session on the Ghana Energy Compact under Mission 300 at the World Bank.
Dr. Forson stressed that the magnitude of the shortfall surpassed Ghana’s domestic capital expenditure and must be treated with urgency.
He said the crisis could not be resolved through tariff adjustments alone, pointing instead to the need for comprehensive reforms across the entire energy value chain.
“The problem is not just tariffs. The inefficiencies, especially in the distribution sector, are being passed on to the ordinary Ghanaian, making electricity costs unnecessarily high,” the Minister added.
He said the Electricity Company of Ghana (ECG) could reduce the shortfall by half if it addressed these inefficiencies.
To address the challenges, he disclosed that Cabinet had approved private sector participation as part of government’s strategy to revive the sector.
Additionally, a Legislative Instrument (LI) has been submitted to Parliament to allow for competitive procurement of power generation services.
Dr. Forson described the Ghana Energy Compact as a timely intervention and called for its rapid implementation.
“The compact has come at the right time. It will in the long run assist Ghana, and we are praying the process is not delayed,” he said.
He made an urgent appealed from astakeholders, saying “Time is of the essence. We must act quickly if we are to prevent further damage to our economy and improve the lives of Ghanaians.”
He said the Electricity Company of Ghana (ECG) could reduce the shortfall by half if it addressed these inefficiencies.
To address the challenges, he disclosed that Cabinet had approved private sector participation as part of government’s strategy to revive the sector.
Additionally, a Legislative Instrument (LI) has been submitted to Parliament to allow for competitive procurement of power generation services.
Dr. Forson described the Ghana Energy Compact as a timely intervention and called for its rapid implementation.
“The compact has come at the right time. It will in the long run assist Ghana, and we are praying the process is not delayed,” he said. He made an urgent appealed from astakeholders, saying “Time is of the essence. We must act quickly if we are to prevent further damage to our economy and improve the lives of Ghanaians.”
