Audio By Carbonatix
Despite marked improvements, the energy sector shortfall persists, the International Monetary Fund has disclosed in its Staff Report on Ghana.
In 2025, the energy sector shortfall was over US$500 million. According to the IMF, this was assumed by the government, either through legacy debt payments or fuel purchases.
While this is significantly below the budgeted annual shortfall for 2025 (US$1.7 billion), the IMF wants more to be done to restore ECG to financial sustainability and reduce fiscal risks in the sector.
To this effect, the IMF said the 2026 Budget includes GH¢15 billion (US$1.1 billion) to cover the projected energy sector shortfall, in addition to the agreed payments on legacy debt.
“The smaller budgeted shortfall is justified by the 2025 outturn, as well as the expected reduction in power generation costs from renegotiated PPAs and projected decreased reliance on costly liquid fuels”, it explained.

In 2026, the IMF projects an energy sector shortfall of US$1.103 billion. This comprises of US$925 million power sector shortfall and US$178 million gas sector shortfall.
Revenue to be collected is projected at US$2.607 billion whilst generation costs is estimated at US$3.53 billion.
Out of the generation costs, US$786 million will come from operating expenditures, US$918 million as other fuel payments, US$270 as liquid fuel payment, US$478 million as capital expenditure and US$165 million as debt.
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