Accra: Finance Minister Dr. Cassiel Ato Baah Forson has announced that the Ghanaian government has approved private sector participation in the nation’s energy sector through the procurement of power plants. This move is aimed at stabilizing the country’s electricity supply.
According to Ghana News Agency, the minister revealed that the cabinet has already approved the involvement of the private sector, and a Legislative Instrument has been submitted to Parliament to facilitate competitive procurement for the power plants. This announcement came after deliberations on the Ghana Energy Compact during the Mission 300 at the 2025 World Bank Group (WBG)/International Monetary Fund (IMF) Spring Meetings held in Washington, DC, USA.
Dr. Forson highlighted the timely arrival of the Energy Compact, emphasizing its potential to make a significant impact on the sector. He expressed optimism that the process would not encounter delays and noted that these steps are crucial for ensuring transparency and sustainability in the energy sector.
The minister identified the energy sector’s US$2 billion financial shortfall as Ghana’s most significant economic risk, pledging that the government would take swift action to address this issue. He pointed out that inefficiencies within the Electricity Company of Ghana (ECG) could alone reduce the shortfall by half.
Dr. Forson underscored the urgency of implementing reforms in the energy sector, particularly in distribution, to prevent high tariffs from burdening consumers. Following Ghana’s Fourth Review under the Extended Credit Facility (EFC) programme, the IMF team highlighted delays in energy sector reforms and called for quarterly electricity tariff adjustments and structural reforms to mitigate the shortfall and prevent new arrears.
In response, the Public Utilities Regulatory Commission (PURC) announced a 14.75 percent increase in electricity tariffs, set to take effect on May 3, 2025, aimed at ensuring revenue stability for utility providers while minimizing the impact on consumers.