Despite recent progress, Ghana’s energy sector continues to pose a significant fiscal risk, the Finance Minister Dr Cassiel Ato Forson has acknowledged. 

However, targeted reforms are underway to stem losses and improve financial transparency in the sector.

Dr Ato Forson, addressing journalists at a joint press briefing with the Bank of Ghana, noted, “Fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall.”

Key among these reforms is the operationalisation of the single account mechanism and the strict implementation of the Cash Waterfall Mechanism, which ensures fair and regular payments to Independent Power Producers (IPPs) in accordance with agreed guidelines.

These interventions are expected to improve liquidity flow and mitigate the build-up of new arrears in the energy sector, a chronic issue that has undermined fiscal balance over the years.

The Finance Minister reiterated his commitment to transparent energy sector governance, noting that addressing inefficiencies in this area is vital for overall macroeconomic recovery and the credibility of the ongoing IMF programme.