Despite recent progress, Ghana’s energy sector continues to pose significant fiscal risks, Finance Minister Dr. Cassiel Ato Forson has admitted.
Speaking at a joint press briefing with the Bank of Ghana and the International Monetary Fund, Dr. Forson acknowledged the challenges but stressed that targeted reforms are already underway to stem losses and improve financial transparency.
“Fiscal risks in the energy sector remain a challenge, but we have instituted measures to reduce, and eventually eliminate, the shortfall,” he told journalists.
Among the key interventions, the Finance Minister highlighted the operationalisation of a single account mechanism and the strict enforcement of the Cash Waterfall Mechanism. This system ensures fair and consistent payments to Independent Power Producers (IPPs) based on established guidelines.
These reforms are expected to improve liquidity flow within the energy sector and prevent the accumulation of new arrears—a recurring issue that has long strained Ghana’s public finances.
Dr. Forson reaffirmed the government’s commitment to transparent governance in the sector, emphasizing that addressing inefficiencies is crucial for restoring macroeconomic stability and securing the credibility of Ghana’s IMF-supported recovery programme.