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Finance Minister Dr. Cassiel Ato Forson has disclosed that the government inherited a severely distressed energy sector, burdened with annual financing shortfalls exceeding $1.5 billion.
He made the revelation during the presentation of the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24.
We inherited a bleeding energy sector with annual financing shortfalls over $1.5 billion.
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Dr. Cassiel Ato Forson, Minister of Finance stated.
According to Dr. Forson, the sector's financial woes stem from a combination of unsustainable debts, poorly structured power purchase agreements (PPAs), and persistent inefficiencies, all of which have placed immense pressure on Ghana's economy.
He emphasised that these challenges have led to the accumulation of arrears and significant delays in payments across the energy value chain.
This situation, he noted, has severely undermined investor confidence while further straining public finances.
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To address these critical issues, the finance minister said the government has begun implementing comprehensive reforms.
These include the renegotiation of existing PPAs and the strengthening of revenue collection within the energy sector.
The goal, he stressed, is to restore financial viability, improve service delivery, and rebuild trust among stakeholders.
Dr. Forson reiterated the administration’s commitment to ensuring financial discipline and accountability across the energy landscape.
Minority MPs Walk Out Ahead of Budget Review Presentation
Meanwhile, the Minority Caucus in Parliament staged a walkout on Thursday, July 24, shortly before Dr. Forson began his presentation.
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Their action was in protest against recent violent incidents during the Ablekuma North parliamentary election rerun.
Minority Chief Whip Frank Annoh-Dompreh attempted to address the issue on the floor, but Speaker Alban Bagbin urged him to hold off, citing the importance of allowing the Finance Minister to proceed with his statement.
The minority MPs, however, insisted they could not participate under such circumstances and exited the chamber.
Their departure was met with chants of “away” from the majority of MPs. The minority later proceeded to Cantonments, where they presented a petition to members of the Diplomatic Corps, with similar submissions expected at the Jubilee House.