Finance Minister Dr. Cassiel Ato Forson has revealed that the current administration inherited a critically distressed energy sector, saddled with annual financing deficits exceeding \$1.5 billion.
Presenting the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Ato Forson described the sector as being in a state of financial hemorrhage, citing unsustainable debt levels, flawed power purchase agreements, and operational inefficiencies as major contributors to its instability.
“We inherited a bleeding energy sector with annual financing shortfalls over \$1.5 billion,” the Minister told lawmakers.
He explained that these financial gaps have resulted in mounting arrears and widespread delays in payments across the energy value chain, which have significantly eroded investor confidence and compounded Ghana’s fiscal pressures.
Dr. Ato Forson stressed the urgency of structural reforms to restore financial integrity and operational efficiency in the sector.
To this end, he announced that the government has commenced a series of interventions, including the renegotiation of expensive power deals and improved mechanisms for revenue collection.
He reaffirmed the government’s commitment to restoring financial discipline and accountability in the energy sector, promising that ongoing reforms are aimed at stabilising the industry and securing long-term energy security for the country.