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

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

He stated that targeted reforms are in progress. These reforms aim to reduce losses and improve financial transparency.

During a press briefing, Dr. Ato Forson said, “Fiscal risks in the energy sector remain a challenge.” He added that measures have been instituted to eliminate the shortfall.

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 sector. They aim to reduce new arrears, which have long affected fiscal balance.

The Finance Minister emphasized his commitment to transparent governance in the energy sector. He believes addressing inefficiencies is crucial for macroeconomic recovery and the IMF programme's credibility.