Ghana’s Energy Recovery Programme Downgrades to ‘Unsatisfactory’
The World Bank has downgraded Ghana’s Energy Sector Recovery Programme from “Moderately Satisfactory” to “Unsatisfactory”, citing implementation delays caused by financing constraints, election-related disruptions, tighter procurement controls and slow progress by implementing agencies.
In its latest implementation report dated June 30, 2026, the Bank said the absence of Commitment Authorisations from the Ministry of Finance, coupled with new fiscal controls and procurement restrictions, had slowed key reforms across the electricity sector.
The programme, approved in June 2024 and made effective in March 2025, is designed to improve the financial sustainability of the Electricity Company of Ghana (ECG) by enhancing operational efficiency, reducing revenue losses and expanding access to clean cooking solutions.
The report shows that only one programme indicator was fully achieved during the review period. ECG met a key transparency target by completing its audited 2025 financial statements in May 2026, although the audited accounts had not yet been published on the company’s website at the time of the assessment.
Three other indicators recorded partial progress. ECG has implemented its energy accounting system in only 20 percent of its operational districts, raising concerns that nationwide rollout may miss programme deadlines. The utility also completed its 2025 customer satisfaction survey, but the findings remain in draft form and have not been published.
The first phase of the National LPG Promotion Programme was also rated as partially achieved. About 38,000 people have received clean cooking solutions, well below the programme’s target of 457,000 beneficiaries.
The World Bank said several key reforms remain off track. GRIDCo is yet to submit its Security Constrained Economic Dispatch methodology to the Energy Commission and has not engaged consultants to complete the work aimed at reducing electricity generation costs through more efficient power dispatch.
ECG’s collection efficiency has also worsened, falling to 85 percent from the programme baseline of 86 percent and remaining far below the 93 percent target set for the end of 2027. The utility has also failed to integrate an Independent Power Producer invoicing system into its financial management platform.
Meanwhile, the combined financial losses of ECG and the Northern Electricity Distribution Company (NEDCo) have risen to about US$1.5 billion, instead of declining towards the programme target of US$525 million by 2027.
The World Bank identified the lack of Commitment Authorisations from the Ministry of Finance as a major factor behind the delays, noting repeatedly that the absence of approvals had prevented the disbursement of funds needed to achieve programme targets.
