Finance Minister Dr. Cassiel Ato Forson has painted a grim picture of Ghana’s energy sector, describing it as “bleeding” with annual financing shortfalls exceeding $1.5 billion at the time the current administration took over.
Presenting the 2025 Mid-Year Budget Statement in Parliament on Thursday, July 24, Dr. Forson said the financial health of the energy sector had deteriorated due to deep-seated inefficiencies and structural weaknesses.
“We inherited a bleeding energy sector with annual financing shortfalls in excess of $1.5 billion,” the Minister stated.
He attributed the shortfalls to a combination of legacy debts, poorly negotiated Power Purchase Agreements (PPAs), weak revenue collection systems, and high operational costs throughout the power value chain.
According to him, these challenges posed major threats to the country’s energy security and overall economic recovery agenda.
In response, Dr. Forson said the government has initiated a range of reforms to address the sector’s long-standing issues.
These include renegotiating expensive PPAs, cutting excess capacity charges, and improving governance frameworks across the energy sector.
He assured Parliament that the Mahama administration remains focused on restoring financial stability and building a resilient energy sector that can support long-term national development.
Meanwhile, the Minority staged a walkout moments before in protest over what they described as the government’s failure to address violent incidents during the Ablekuma North by-election held earlier this month.
Source: Starrfm.com.gh
