The Minister of Finance, Dr Cassiel Ato Forson has described Ghana’s energy sector as the biggest economic risk facing the country.
Speaking during a deep-dive session on the Ghana Energy Compact under Mission 300 at the ongoing World Bank/ International Monetary Fund Spring Meetings in Washington DC on Tuesday, he said the sector was burdened with a financial shortfall of approximately $2 billion.
This amount, he said surpassed the country’s 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. ECG alone could cut the shortfall by half if it addresses these inefficiencies.” he said.
To bring stability and sustainability to the sector, he said cabinet had already approved private sector participation.
“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.” he said.
The Energy Compact, Dr Forson said had come at the right time as it had the potential to make a lasting impact.
“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.” he said.
At the heart of the Spring Meetings are meetings of the joint World Bank Group/IMF Development Committee and the IMF International Monetary
and Financial Committee, where progress on the work of the institutions is discussed.
Other featured events include regional briefings, press conferences, and fora focused on international development, issues of debt, economic recovery, and private sector mobilization.
