IMANI Africa has welcomed what it describes as an encouraging reform agenda by the Ministry of Energy and Green Transition, while calling for transparency, independent verification and measurable results in the implementation of proposed changes.
The policy think tank said Ghana’s energy sector had faced years of financial distress, mounting liabilities, distribution losses, expensive power contracts and infrastructure deficits, stressing that sustainable recovery would require structural reforms and stronger financial discipline.
In a statement following an engagement with the Ministry on October 26, 2026, an IMANI Africa delegation led by President Franklin Cudjoe, Vice President Selorm Branttie and associates John Sitsofe Mensah, Dennis Asare and Kay Codjoe held discussions with the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, and his team.
IMANI said the discussions pointed to efforts to address longstanding weaknesses through financial management reforms, technological innovation, private-sector participation and strategic infrastructure investment.
The think tank identified reported improvements in the financial performance of the Electricity Company of Ghana (ECG) as one of the encouraging developments.
According to figures discussed during the engagement, ECG’s after-tax losses declined from GH¢8.26 billion in 2024 to GH¢2.52 billion in 2025, representing an improvement of approximately 69.5 per cent.
IMANI, however, said the contribution of operational efficiency, exchange-rate changes and other financial adjustments needed to be properly distinguished to establish the factors behind the improvement.
The organisation also highlighted the Ministry’s reported progress in revenue declaration under the Cash Waterfall Mechanism, which it said had improved from approximately 40 per cent to full declaration.
It noted that better revenue declaration could strengthen transparency and payment discipline but cautioned that declaring revenue was not the same as collecting all outstanding bills.
IMANI also welcomed discussions on restructuring ECG’s distribution operations through private-sector participation.
Under the proposal being considered by the Ministry, distribution operations could be divided into approximately four zones, with performance-based contracts, Ghanaian equity participation and opportunities for domestic pension funds to invest.
The think tank said the model could improve revenue collection, encourage operational competition and support the adoption of modern technologies if properly structured.
It stressed, however, that transparent procurement, fair allocation of risks, measurable performance targets and the protection of public assets would be essential safeguards.
The statement further highlighted efforts to reduce electricity distribution losses through technology and improved monitoring.
IMANI noted that ECG’s system losses were recorded at 27.05 per cent in 2024, while a figure of approximately 23 per cent was discussed during the engagement.
It said the reported improvement required independent confirmation.
Proposed interventions include smart metering, remote consumption monitoring, transformer-level energy accounting and reducing manual cash handling.
According to IMANI, these measures could improve billing accuracy, strengthen revenue collection and help detect electricity theft and other avoidable commercial losses.
Infrastructure renewal was another major issue discussed during the meeting.
The Ministry outlined approximately 1,500 transformer interventions involving replacements and refurbishments, alongside efforts to strengthen local engineering capacity.
IMANI said the proposal to track decommissioned transformers by serial number and refurbish suitable units locally could reduce costs and create opportunities for Ghanaian technical businesses.
The organisation also highlighted the Minister’s warning that inadequate investment in transmission infrastructure could threaten electricity reliability within approximately two years.
It said early recognition of the risk presented an opportunity to mobilise financing and address potential weaknesses before they developed into a wider national problem.
IMANI described the Ministry’s green-transition plans, including utility-scale battery storage, increased rooftop solar adoption and a shift towards solar streetlighting, as promising policy directions.
It said battery storage could improve grid flexibility, while distributed solar could ease pressure on conventional electricity supply and create opportunities for households and small businesses.
The think tank also welcomed the Minister’s concerns about the customs treatment of separately imported solar components. It called for the reported disparity between complete solar kits and individual batteries or inverters to be verified and addressed where necessary.
On streetlighting, IMANI said proposed solar installations and performance-based maintenance contracts could reduce recurring electricity costs, limit cable theft and establish clearer responsibility for maintaining public lighting.
The statement also called attention to procurement discipline within the energy sector.
IMANI cited historical ECG procurement commitments reportedly reaching GH¢9.8 billion against a budget of GH¢1.8 billion, while noting that the figures required reconciliation.
It described efforts to prioritise essential expenditure as sensible, arguing that financial discipline should become an institutional practice rather than depend on individual officeholders.
The think tank added that the Ministry’s interest in reviewing exploration incentives, attracting investment and addressing contractual disputes in the upstream petroleum sector reflected the need to rebuild investor confidence.
IMANI Calls for 90-Day Accountability Framework
Despite its positive assessment of the reform agenda, IMANI said the next phase must focus on measurable delivery rather than policy announcements.
It called for the publication of a consolidated performance report covering revenue recovery, electricity distribution losses, transformer interventions, transmission investment, renewable-energy projects and procurement reforms.
The organisation also proposed a 90-day accountability framework to enable the Ministry to substantiate its reported achievements, clarify outstanding questions and establish measurable commitments.
IMANI said Dr Jinapor’s emerging reform agenda deserved a fair hearing, particularly its emphasis on financial discipline, technology, private investment and infrastructure renewal.
It maintained that the ultimate test would be whether the proposed measures translated into reliable electricity, a financially sustainable energy sector, opportunities for local businesses and public spending that produced visible results.
The think tank concluded that disciplined and transparent implementation could help move Ghana’s energy sector away from recurring financial rescues towards lasting institutional recovery.
