Ghana’s energy sector has been identified as the country’s biggest economic risk, with a financial shortfall of approximately $2 billion, surpassing domestic capital expenditure. The sector requires urgent reform, with inefficiencies in the distribution sector contributing to high tariffs for ordinary Ghanaians.
According to a recent statement, the Electricity Company of Ghana (ECG) could cut the shortfall by half if it addresses inefficiencies. Cabinet has approved private sector participation, and a Legislative Instrument has been submitted to Parliament to enable competitive procurement for power plants.
The Ghana Energy Compact under Mission 300 has been launched, and stakeholders are hopeful that it will have a lasting impact on the sector. However, there are concerns that delays in the process could hinder progress. Swift action is deemed necessary to address the energy sector’s challenges and mitigate its impact on the economy and the well-being of Ghanaians.
Ruth Abla ADJORLOLO
