Minister of Finance, Dr. Cassiel Ato Forson, has raised serious concerns about the state of the country’s energy sector, describing it as the most pressing economic risk Ghana currently faces.

In a post shared on X, Dr. Forson provided this assessment following a detailed session on the Ghana Energy Compact under Mission 300, held at the World Bank headquarters in Washington, D.C., on Tuesday, April 22.

He pointed out that the sector is grappling with a staggering financial gap of about $2 billion—an amount he emphasized is larger than the nation’s entire domestic capital spending.

“During a deep-dive session on the Ghana Energy Compact under Mission 300 at the WorldBank Yesterday, I reiterated that Ghana’s energy sector is currently the biggest economic risk we face. The sector is burdened with a financial shortfall of approximately $2 billion.

This amount surpasses our domestic capital expenditure. This challenge goes beyond tariffs. The entire energy value chain requires urgent reform. Inefficiencies, especially in the distribution sector, are being passed onto the ordinary Ghanaian through high tariffs,” part of his post stated.

He singled out the Electricity Company of Ghana (ECG) as a key area where reform could drastically improve the situation. “ECG alone could cut the shortfall by half if it addresses these inefficiencies,” he noted.

Dr. Forson added that the government has already taken concrete actions to involve the private sector in addressing the crisis. He revealed that cabinet has endorsed this strategy and a Legislative Instrument has been submitted to Parliament to facilitate competitive power plant procurement.

“Cabinet has already approved private sector participation, and we have submitted the Legislative Instrument to Parliament to enable competitive procurement for power plants. These are critical steps toward bringing transparency and sustainability to the sector. The Energy Compact has come at the right time,” he wrote.

Stressing the urgency of the reforms, Dr. Forson warned against any delays in implementation. “It has the potential to make a lasting impact, and we are hopeful that the process will not be delayed. Time is of the essence. We must act swiftly to turn this around for the good of our economy and the well-being of our people.”

His comments come shortly after Ghana concluded a staff-level agreement with the International Monetary Fund (IMF) on the fourth review of its economic program. That agreement is expected to unlock roughly $370 million in financial assistance, aimed at supporting the country’s broader recovery efforts.