Ghana’s Finance Minister, Cassiel Ato Forson, has explained that Ghana’s energy sector is the biggest economic risk the country faces at the moment.
According to him, the sector is burdened with a financial shortfall of approximately $2 billion, an amount that surpasses the country’s domestic capital expenditure.
To him, the challenge in the sector goes beyond just tariffs because the entire value chain requires reform.
“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. ECG alone could cut the shortfall by half if it addresses these inefficiencies,” he said.
The Minister was speaking at the World Bank, during a deep-dive session on the Ghana Energy Compact under Mission 300.
To him, “Inefficiencies, especially in the distribution sector, are being passed onto the ordinary Ghanaian through high tariffs. ECG alone could cut the shortfall by half if it addresses these inefficiencies”.
Read His Statement Below
Yesterday at the World Bank, during a deep-dive session on the Ghana Energy Compact under Mission 300, 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. 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. ECG alone could cut the shortfall by half if it addresses these inefficiencies.
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. 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.
