The Government of Ghana will accelerate reforms in the energy sector, including introducing private sector participation in electricity distribution, as part of efforts to restore the financial sustainability of the industry while ensuring reliable and affordable power supply.
Presenting the 2026 Mid-Year Fiscal Policy Review in Parliament on the authority of President John Dramani Mahama, Finance Minister Dr Cassiel Ato Forson said the government remained committed to implementing the Energy Sector Recovery Programme to address longstanding financial and operational challenges across the sector.
He said the reforms would prioritise reducing the sector’s financing gap, resolving legacy debts, strengthening governance and transparency, and improving the operational and commercial performance of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo).
Dr Forson announced that the government would continue the full implementation of the Cash Waterfall Mechanism to ensure timely payments throughout the energy value chain and prevent the accumulation of new arrears.
As part of broader reforms, he disclosed that following Cabinet approval for private sector participation in electricity distribution, the government appointed a Transaction Adviser in June 2026 to undertake due diligence and develop a framework for introducing private investment into ECG and NEDCo.
The Finance Minister said the government would, before the end of the year, finalise the implementation strategy based on the adviser’s recommendations. The strategy will cover the transaction structure, required legal and regulatory reforms, investor prequalification and the request for proposals.
According to Dr Forson, the reforms are intended to place Ghana’s electricity distribution system on a more efficient, financially sustainable and customer-focused footing while safeguarding the long-term interests of the Ghanaian people.
The energy sector reforms form part of the government’s broader fiscal and structural reform agenda aimed at strengthening public finances, improving service delivery and supporting sustainable economic growth.
