Minister of Finance, Dr. Cassiel Ato Forson, has described Ghana’s energy sector as the single greatest threat to the country’s economy, citing a staggering $2 billion financial shortfall, a figure that exceeds the nation’s entire domestic capital expenditure.
In a statement shared on social media on Wednesday, April 23, 2025, Dr. Forson revealed that during a deep-dive session on the Ghana Energy Compact under Mission 300 at the World Bank, he emphasized the urgent need for reforms across the entire energy value chain.
“This challenge goes beyond tariffs,” he noted. “The entire system from generation to distribution requires immediate reform. Inefficiencies, especially in the distribution sector, are being passed onto ordinary Ghanaians through high tariffs.”
He identified the Electricity Company of Ghana (ECG) as a key area needing attention, stating that addressing its internal inefficiencies could reduce the sector’s financial gap by half. “These inefficiencies are costing Ghanaians. It’s time we tackled them head-on,” he said.
Dr. Forson further disclosed that Cabinet has approved private sector participation in the energy sector, and a Legislative Instrument has been submitted to Parliament to enable competitive procurement of power plants , a step he says will promote transparency and long-term sustainability.
“The Energy Compact has come at the right time,” he added. “It holds the potential to make a lasting impact, and we are hopeful that the process will move without delay.”
He also added that, “Time is of the essence. We must act now for the good of our economy and the well-being of our people.”
