Energy sector at risk of collapse as debt hits $3.1 billion – Finance Minister warns

Finance Minister Dr. Cassiel Ato Forson has shared a serious update on Ghana's energy sector. He informed Parliament that the country faces an energy debt crisis of $3.1 billion as of March 2025.

This debt includes unpaid bills to Independent Power Producers, state-owned companies, and fuel suppliers. The situation worsens due to guarantees from institutions like the World Bank. The government must raise an additional $632 million to replenish these guarantees.

Dr. Forson stated that at least $3.7 billion is needed to resolve the sector's debt. This amount would help restart Ghana's struggling electricity industry. He noted that overreliance on thermal power generation has caused significant revenue shortfalls.

Additionally, he pointed out that the cost of liquid fuel for thermal plants is not included in current electricity tariffs. This omission worsens the financial gap in the sector.

To stabilize the situation, the government plans to increase export prices for petroleum products like petrol and diesel. However, Dr. Forson assured that domestic consumers will not face higher costs from this change. The recent appreciation of the Ghanaian Cedi will help offset any impact.

"The energy sector is at a tipping point," Dr. Forson warned. "If we do not change course, we risk total collapse." The government is committed to urgent reforms for financial stability and reliable power supply for all Ghanaians.