The World Bank has downgraded Ghana’s Energy Sector Recovery Programme from “Moderately Satisfactory” to “Unsatisfactory”, citing implementation delays caused by financing constraints, stricter fiscal controls, election-related disruptions and procurement bottlenecks.
In its latest implementation report, dated June 30, 2026, the Bank said the absence of Commitment Authorizations from the Ministry of Finance, coupled with new spending restrictions and procurement measures, had slowed the implementation of several key electricity sector reforms.
Approved in June 2024 and declared effective in March 2025, the programme is designed to improve the financial sustainability of the Electricity Company of Ghana (ECG) by enhancing operational efficiency, reducing revenue losses and expanding access to clean cooking solutions.
The report indicates that implementation has been uneven, with only one performance indicator fully achieved during the review period.
ECG met one of the programme’s transparency targets by publishing its audited financial statements for the 2025 financial year in May 2026. However, the World Bank noted that the audited accounts had yet to be uploaded to the utility’s website.
Several other performance indicators recorded only limited progress.
ECG has rolled out its energy accounting system in just 20% of its operational districts, raising concerns that nationwide implementation will not be completed on schedule.
Similarly, although the utility completed its 2025 customer satisfaction survey, the findings remain in draft form and have not been released publicly.
Progress under the National LPG Promotion Programme has also fallen short of expectations. While around 38,000 beneficiaries have received clean cooking solutions, this remains significantly below the programme’s target of 457,000, with implementation currently at a standstill.
The report also identified several programme targets that remain off track.
The Ghana Grid Company (GRIDCo) has yet to submit its Security Constrained Economic Dispatch methodology to the Energy Commission, and the procurement of consultants to undertake the work has not commenced.
The methodology is intended to improve power system efficiency by prioritising lower-cost electricity generation before dispatching more expensive plants.
ECG’s collection performance has also weakened, with its collection efficiency falling to 85%, below the programme baseline of 86% and well short of the 93% target set for 2027.
In addition, ECG has not integrated an Independent Power Producer (IPP) invoicing system into its financial management platform.
Meanwhile, the combined financial losses of ECG and the Northern Electricity Distribution Company (NEDCo) have continued to increase, reaching approximately US$1.5 billion, compared with the programme’s target of reducing losses to US$525 million by the end of 2027.
According to the World Bank, one of the principal causes of the programme’s slow implementation has been delays in securing funding approvals from the Ministry of Finance.
The report repeatedly notes that the absence of Commitment Authorizations prevented the release of funds needed to carry out planned activities.
As a result, the distribution of LPG stove packages to households, schools and caterers has slowed considerably.
Plans to install more than one million smart electricity meters, including those intended for government ministries, departments and agencies, have also stalled.
Funding constraints have likewise delayed the introduction of ECG’s electronic IPP invoicing system and postponed GRIDCo’s procurement of consultants for the Security Constrained Economic Dispatch project.
The report further states that preparations for ECG’s next customer satisfaction survey have also been delayed because the required funding approvals have not been granted.
The World Bank also cited new procurement directives, expenditure controls introduced by the Ministry of Finance, the 2025 general elections, the subsequent change in government and implementation challenges within the beneficiary institutions as additional factors affecting programme delivery.
Despite the downgrade, the Bank believes implementation could improve if coordination between government institutions and implementing agencies is strengthened, particularly with regard to funding approvals and project execution.
The Energy Sector Recovery Programme remains central to Ghana’s efforts to improve the financial viability of the electricity sector, reduce operational losses and ease the fiscal burden created by energy sector liabilities.
The report notes that, despite the introduction of the GH¢1 levy on petroleum products in 2025, the government still transferred GH¢12.9 billion from the national treasury to support energy sector payments during the year.
According to the World Bank, the downgrade highlights that restoring the financial health of Ghana’s energy sector will require not only additional revenue measures but also the timely implementation of structural reforms aimed at improving operational performance and financial sustainability.
JoyNews Research reported that it contacted both the Ministry of Energy and Green Transition and the Ministry of Finance for comment, but neither institution had responded at the time of publication.