Ato Forson: Energy sector still Ghana’s biggest economic threat

Finance Minister Dr. Cassiel Ato Forson says Ghana’s energy sector remains the single greatest threat to the country’s long-term economic stability, despite efforts to reset the sector.

Delivering the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24, Dr. Forson revealed that the current administration inherited a severely distressed energy sector with annual financing gaps exceeding $1.5 billion.

He blamed the situation on years of poor financial planning and deep-rooted structural inefficiencies by the previous Akufo-Addo government

“We inherited a bleeding energy sector with annual financing shortfalls in excess of $1.5 billion,” he told lawmakers.

In a follow-up interview with Citi FM on Friday, July 25, Dr. Forson sought to allay fears about the sector’s impact on the 2025 budget. He said the necessary allocations have been made to stabilize the sector for the rest of the year.

“The energy [sector] has been catered for appropriately in the budget in terms of amounts that we need to be able to fix the challenge for this year,” he explained. “So it is no longer a risk to this budget, but it remains a risk to the economy.”

The Finance Minister emphasized that the government remains committed to resolving the longstanding challenges within the sector but warned that without structural reforms, the energy crisis could undermine Ghana’s economic recovery efforts.

“I have always said that it is the biggest risk to Ghana’s economy. I stand by that. The biggest risk to Ghana’s economy is the energy sector,” he declared.