Ghana’s Energy Sector faces a staggering $1.1 Billion Bill in 2025

Finance Minister, Dr. Cassiel Ato Forson, has sounded the alarm on Ghana’s energy sector, revealing a massive financial burden that threatens to cripple the economy. In a shocking revelation, Dr. Ato Forson disclosed that the government will have to pay a staggering $1.1 billion to ENI alone in 2025, covering outstanding debts, monthly invoices, and replenishments.

This financial quagmire is a direct result of years of neglect and mismanagement in the energy sector. Critical obligations were consistently pushed aside, leaving a broken system that now demands urgent and painful corrections. The previous government’s failure to address these mounting debts has left the current administration with a daunting task.

The numbers are staggering. Ghana’s monthly energy costs stand at 2.5 billion cedis, with fuel and power generation consuming 1.9 billion cedis. However, the Electricity Company of Ghana (ECG) collects a mere 1.3 billion cedis, leaving a gaping shortfall of 1.2 billion cedis every month.

This financial strain on the energy sector has far-reaching implications for Ghana’s economy. The International Monetary Fund (IMF) has identified the energy sector as a significant source of fiscal risk, citing a legacy debt of $2.1 billion, equivalent to 2.8% of Ghana’s Gross Domestic Product (GDP) as of December 2023.

Dr. Forson, through his social media handle, emphasized the need for urgent action, stating that the government is committed to stabilizing the sector, clearing the debts, and ensuring Ghana’s energy future is no longer crippled by poor decisions of the past. The minister’s words serve as a stark reminder of the challenges ahead, but also offer a glimmer of hope for a more sustainable energy future.

Source: Zangalinews