The Minister of Finance, Dr. Cassiel Ato Forson, has raised concerns over the mounting financial shortfalls in the country’s energy sector, warning of significant fiscal risks.
Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, he revealed that the Ministry of Finance had to allocate GH¢20.8 billion in 2024 to support the sector—funds that could have been used for roads, schools, and job creation.
Despite this intervention, projections under the Energy Sector Recovery Programme (ESRP) indicate that the sector’s financing gap could rise to GH¢35 billion in 2025, with the cumulative shortfall for 2023-2026 estimated at GH¢140 billion, exceeding the total allocation for Goods and Services for all Ministries, Departments, and Agencies (MDAs) in 2025 by over 20 times.
Additionally, the Minister highlighted the challenge of legacy debts owed to Independent Power Producers(IPPs), which stood at US$1.73 billion by the end of 2024. He stressed the urgent need for reforms to address inefficiencies in the energy sector to prevent further financial strain on the country’s economy.