The Government of Ghana has allocated GH¢20.8 billion to address financial shortfalls in the energy sector, Finance Minister Dr. Cassiel Ato Forson has revealed in the 2025 Budget.
This money will be used to stabilize the sector to bring continuous power supply.
Speaking in Parliament on Tuesday, March 11, 2025, during the presentation of the 2025 Budget and Economic Policy Statement, Dr. Forson said there was a critical need to inject money into the energy sector for it to continually operate.
“Mr. Speaker, in 2024, the MoF supported the energy sector with payments of about GH¢20.8 billion. These resources could have been used for job creation and other development programs like roads, schools, and hospitals if the sector inefficiencies were resolved,” he stated.
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The finance minister also said that despite these payments, there was the need for further intervention to handle other challenges.
“Mr. Speaker, the energy sector continues to face significant financial risks, and this allocation is necessary to address pressing shortfalls and ensure stability,” he stated.
Dr. Forson added that the financial pressure in the sector is worsening due to the rising costs and inefficiencies, which has increased fiscal pressure on the government.
“The Business as Usual (BAU) energy sector financing shortfall has increased significantly to about GH¢35 billion for 2025, even after the rather large spending for the sector’s shortfall in 2024.” He stated,
The GH¢20.8 billion will help the government to mitigate the crisis in the energy sector, although there are some financial difficulties in the sector. However, the government is committed to addressing these challenges.