Ghana faces $9 billion energy sector deficit by 2026 – Finance Minister
Ghana’s energy sector is on the brink of a financial crisis, with cumulative shortfalls projected to exceed $9 billion by 2026 if urgent reforms are not undertaken, Finance Minister Dr Cassiel Ato Forson has cautioned.
Speaking at the National Economic Dialogue (NED) 2025 at the Accra International Conference Centre on Monday, March 3, Dr Forson described the power sector as highly inefficient, burdened by rising operational costs and mounting debt.
“Fixing the sector requires bold measures,” he stated, revealing that the Electricity Company of Ghana (ECG) collects only 62% of the energy it purchases, yet a large portion of its revenue is spent on non-essential expenditures.
He disclosed that in 2024 alone, the sector recorded a shortfall of $2.2 billion, despite government transfers of $2.1 billion between 2023 and 2024 to stabilise the industry.
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Dr. Forson warned that failure to address these inefficiencies would worsen the country’s energy crisis, placing further strain on the economy.
He called for reforms in tariff structures, improved revenue collection, and greater investment in renewable energy to make the sector financially sustainable.