By Franklin ASARE-DONKOH
The Finance Minister, Dr. Cassiel Ato Baah Forson, has disclosed that the government has approved a series of aggressive structural interventions targeting state-owned enterprises (SOEs).
According to him, the interventions are aimed at stabilising the nation’s fiscal landscape and curbing a rapidly mounting energy sector debt.
Speaking in an interview with Bloomberg at The Africa Debate in London, Dr. Forson warned that without immediate and decisive action, liabilities within the energy sector are on a dangerous trajectory that could double by 2027.
This fiscal strain, according to the Finance Minister, has already begun influencing international market sentiment, underscoring the urgency of the situation.
Dr. Forson noted that the core of the financial challenges stems from operational inefficiencies rather than pricing structures alone.
He pointed to structural flaws within the state-run distribution network as a primary driver of the crisis.
“The problem is not just tariffs. The inefficiencies, especially in the distribution sector, are being passed on to the ordinary Ghanaian, making electricity costs unnecessarily high,” Dr. Forson stated.
He further emphasised the scale of the crisis, adding: “The energy sector debt remains the largest among Ghana’s liabilities and continues to pose a major risk. The magnitude of the shortfall surpasses Ghana’s domestic capital expenditure and must be treated with urgency.”
To reverse the trend, he said the government is shifting toward aggressive corporate governance reforms and private sector participation, particularly targeting loss-making entities such as the Electricity Company of Ghana (ECG).
The strategy, he explained, aims to introduce stricter financial discipline and operational accountability.
“Cabinet has approved private sector participation as part of the government’s strategy to revive the sector. Delayed action is no longer an option.
Time is of the essence. We must act quickly if we are to prevent further damage to our economy and improve the lives of Ghanaians,” the Finance Minister stressed.
