Despite the progress made by the government in restoring macroeconomic stability, the energy sector remains one of the most significant fiscal risks facing the country, Deloitte has disclosed in its assessment of the Mid-Year Budget Review.

According to the professional services firm, though the Mid-Year Review identifies the financial health of the Electricity Company of Ghana and the broader energy sector as important reform priorities, the firm’s financial challenges have implications in the energy sector, but also for the broader fiscal position of the country.

“Without meaningful reforms, losses within the sector could eventually migrate onto the government's balance sheet and undermine hard-won gains in debt sustainability”, it explained.

For this reason, Deloitte urged the government to pursue the energy sector reforms with urgency and consistency.

Sovereign Debt Restructuring

Ghana's sovereign debt restructuring is nearing completion.

However, Deloitte alluded that liabilities within the energy sector, particularly those associated with state-owned enterprises, remain a source of concern.

It welcomed the Finance Minister's position on strengthening public financial management control and pursuing broader energy sector reforms. “The Minister's emphasis on strengthening public financial management controls, enforcing stricter commitment authorisation procedures and pursuing broader energy sector reforms is therefore welcome”.

The professional services firm also urged the government to continue to avoid excessive reliance on short-term domestic debt, which it describes can increase refinancing risks and interest costs.

“While domestic borrowing remains an important source of financing, the government should continue to avoid excessive reliance on short-term domestic debt, which can increase refinancing risks and interest costs”.

Debt Service Costs

The government's 2026 Mid-Year Budget Review largely preserves the structure and direction of both the 2025 Budget and the 2026 Budget Statement.

Fiscal consolidation and debt sustainability remain at the heart of economic policy, while strong growth and single-digit inflation have emerged as the defining features of the current macroeconomic landscape.

Deloitte welcomed the positive development in the decline in debt service costs relative to government revenue.

“Debt service as a proportion of domestic revenue fell from 55.7% in 2022 to 28.6% by mid-2026. This means a smaller share of government revenue is being devoted to servicing debt, thereby creating fiscal space for investments in health, education, infrastructure and other development priorities”.

Taken together, Deloitte stated that these indicators point to an economy that has made substantial progress since the debt crisis.

Nevertheless, it said there remain important areas that require vigilance if the gains of the past two years are to be sustained.