Energy sector fiscal risks remain, but we’ve moved to contain them - Finance Minister

Ghana's energy sector still poses a significant fiscal risk. This was acknowledged by Finance Minister Dr. Cassiel Ato Forson.

Targeted reforms are being implemented to reduce losses. These reforms aim to improve financial transparency in the sector.

Dr. Ato Forson spoke at a press briefing with the Bank of Ghana. He said, “Fiscal risks in the energy sector remain a challenge.” He added that measures are in place to reduce and eliminate shortfalls.

A key reform is the single account mechanism. The Cash Waterfall Mechanism will also be strictly implemented. This ensures fair payments to Independent Power Producers (IPPs) based on agreed guidelines.

These changes should improve liquidity flow in the energy sector. They aim to prevent new arrears from building up, which has been a chronic issue.

The Finance Minister emphasized his commitment to transparent governance in the energy sector. He noted that addressing inefficiencies is crucial for macroeconomic recovery and credibility with the IMF program.