Finance Minister Dr. Cassiel Ato Forson has disclosed that the current administration inherited a severely distressed energy sector, burdened by annual financing shortfalls exceeding $1.5 billion.
Delivering the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson described the crisis as a result of unsustainable debts, poorly structured power purchase agreements, and operational inefficiencies. These legacy issues led to the accumulation of arrears and payment delays across the energy value chain, weakening the sector’s functionality, undermining investor confidence, and placing significant strain on public finances.
The Minister indicated that the government has begun implementing corrective measures aimed at stabilizing the sector. These include the renegotiation of problematic power agreements and the strengthening of revenue collection mechanisms.
The administration reaffirmed its commitment to restoring financial discipline and accountability within the energy sector. These efforts are expected to enhance service delivery and support Ghana’s broader economic recovery, making energy sector reform a key pillar of the country’s path to sustainable growth and fiscal stability.