Government has approved a series of aggressive structural reforms targeting state-owned enterprises (SOEs) as part of efforts to stabilize Ghana’s fiscal position and address the country’s growing energy sector debt.
Finance Minister Dr. Cassiel Ato Forson disclosed this during an interview with Bloomberg at The Africa Debate in London, warning that energy sector liabilities could double by 2027 if urgent corrective measures are not implemented.
According to the Minister, the debt burden remains the largest among Ghana’s liabilities and poses a significant threat to the country’s economic stability. He noted that the situation is already affecting investor confidence and international market perceptions.
Dr. Forson attributed much of the financial challenge to operational inefficiencies within the electricity distribution system, particularly at the Electricity Company of Ghana (ECG), rather than tariff levels alone.
“The inefficiencies, especially in the distribution sector, are being passed on to the ordinary Ghanaian, making electricity costs unnecessarily high,” he said.
To address the challenge, Cabinet has approved increased private sector participation in the energy sector, alongside stronger corporate governance reforms aimed at improving operational efficiency, accountability and financial discipline within loss-making state-owned enterprises.
The Finance Minister stressed that swift action is needed to prevent further deterioration of the sector and safeguard Ghana’s economic recovery.
“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,” Dr. Forson stated.