Government Approves Major Reforms to Strengthen State-Owned Enterprises, Says Finance Minister

Finance Minister Dr. Cassiel Ato Baah Forson has revealed that the government has approved a series of far-reaching structural reforms aimed at improving the performance of state-owned enterprises (SOEs) and addressing mounting financial pressures within the energy sector.

Speaking in an interview with Bloomberg during The Africa Debate in London, Dr. Forson said the measures are designed to stabilise Ghana’s fiscal position and prevent the rapid growth of energy sector debt, which he warned could double by 2027 if urgent action is not taken.

According to the Finance Minister, the growing liabilities in the energy sector are already affecting investor confidence and shaping international market perceptions of Ghana’s economy.

He explained that the sector’s challenges are driven largely by operational inefficiencies rather than electricity tariffs alone, pointing specifically to weaknesses within the state-owned power distribution system.

“The issue goes beyond tariffs. Significant inefficiencies in the distribution sector are ultimately transferred to consumers, resulting in higher electricity costs for ordinary Ghanaians,” Dr. Forson said.

He described the energy sector debt as Ghana’s largest financial liability and a major threat to economic stability, noting that the funding gap now exceeds the country’s domestic capital expenditure.

Dr. Forson stressed that addressing the situation requires immediate and decisive intervention.

As part of the reform agenda, the government plans to strengthen corporate governance standards and increase private sector participation in underperforming state-owned entities, particularly the Electricity Company of Ghana (ECG).

He said the objective is to improve operational efficiency, enforce financial discipline, and enhance accountability across the sector.

According to Dr. Forson, Cabinet has already approved the introduction of private sector participation as a key component of efforts to revitalise the energy sector.

“Delaying action is no longer an option. Time is critical, and we must move quickly to prevent further economic challenges and improve outcomes for the Ghanaian people,” he stated.

The reforms form part of the government’s broader strategy to restore financial sustainability, strengthen public institutions, and support long-term economic growth.