By Kwame Bediako 

Finance Minister Dr. Cassiel Ato Forson disclosed on Thursday, July 24, 2025, during the presentation of the 2025 Mid-Year Budget Review to Parliament that the current government inherited an energy sector plagued with severe financial distress. He described the sector as “bleeding,” revealing that it suffered annual financing shortfalls exceeding $1.5 billion.

Dr. Forson detailed that the energy sector’s financial woes were driven by a combination of unsustainable debts, poorly structured power purchase agreements, and operational inefficiencies. These legacy issues, he explained, caused an accumulation of arrears and payment delays throughout the energy value chain, which not only hampered the sector’s functionality but also undermined investor confidence and strained public finances. 

“We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion,” he stated firmly. The Minister emphasized the urgent need for reforms to stabilize and restore the sector’s financial viability. He highlighted that the government has initiated corrective measures, including renegotiating problematic power purchase agreements and enhancing revenue collection mechanisms within the sector. 

These steps aim to improve service delivery and ensure the sector can support Ghana’s broader economic recovery. Parliament was assured of the administration’s unwavering commitment to reestablishing financial discipline and accountability in the energy sector. Dr. Forson’s presentation conveyed a clear message that addressing the inherited energy sector crisis is a top priority for sustainable growth and fiscal stability.

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