Finance Minister, Dr Cassiel Ato Baah Forson, has revealed that the current administration inherited a severely distressed energy sector, burdened with annual financing shortfalls exceeding US$1.5 billion.
According to the Minister who was presenting the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, 2025, Ghana’s energy sector was “bleeding” at the time they took over.
Dr Ato Forson cited unsustainable debts, poorly structured power purchase agreements, and inefficiencies that continue to weigh heavily on the economy.
We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion,” he stated.
The Minister noted that the massive gap in financing had led to an accumulation of arrears and payment delays across the energy value chain, thereby undermining investor confidence and putting further pressure on public finances.
He emphasised the urgent need for reforms to ensure financial viability and improved service delivery.
To address these challenges, Dr Ato Forson said the government has begun implementing corrective measures, including renegotiating power agreements and enhancing revenue collection within the sector.
He assured Parliament that the administration remains committed to restoring financial discipline and accountability in Ghana’s energy sector.
