Ghana’s energy reform plans are encouraging but must now produce measurable improvements in reliability, finances and infrastructure, IMANI Africa has said.
Kay Cojoe said the sector had faced years of financial distress, rising liabilities, distribution losses, costly power contracts and inadequate infrastructure. Successive governments had identified the problems and made political commitments, but had not delivered enough structural change.
The comments followed a 26 October 2026 meeting between the IMANI Centre for Policy and Education (CPE) and the Ministry of Energy and Green Transition. The delegation was led by President Franklin Cudjoe and Vice President Selorm Branttie, with John Sitsofe Mensah, Dennis Asare and Kay Codjoe also attending. They met Minister Dr John Abdulai Jinapor and Deputy Minister Richard Gyan-Mensah.
IMANI said the government’s emerging programme showed promise through its focus on financial discipline, institutional reform, technology and strategic investment, while warning that implementation would be decisive.
One notable development was the reported reduction in ECG’s after-tax losses, from GH¢8.26 billion in 2024 to GH¢2.52 billion in 2025 – a fall of approximately 69.5%. IMANI said the roles played by operational efficiency, exchange-rate movements and other financial adjustments needed to be separated properly.
The ministry also reported that revenue declaration under the Cash Waterfall Mechanism had risen from approximately 40% to full declaration. IMANI said this could improve transparency, payment discipline and investor confidence, while stressing that declaring revenue was not the same as collecting every outstanding bill.
A proposed restructuring of ECG through private-sector participation would divide distribution operations into approximately four zones. The model could include performance-based contracts, Ghanaian equity ownership and access to domestic pension capital.
IMANI said the proposal warranted serious consideration, provided procurement remained transparent, risks were allocated fairly, performance obligations were measurable and public assets were protected.
The organisation also welcomed reported progress in reducing system losses. ECG’s 2024 losses stood at 27.05%, while approximately 23% was discussed during the meeting, although that figure requires independent confirmation. Smart meters, remote monitoring, transformer-level accounting and reduced reliance on manual cash handling were identified as ways to improve billing and tackle electricity theft.
The ministry outlined approximately 1,500 transformer replacements and refurbishments, alongside efforts to strengthen local engineering capacity. Tracking decommissioned transformers by serial number and refurbishing suitable equipment in Ghana could reduce costs and support domestic technical businesses.
Dr Jinapor also warned that weak transmission investment could threaten reliability within approximately two years. IMANI said recognising the risk early created time to secure finance before it developed into another national emergency.
Its green-transition plans include utility-scale battery storage, more rooftop solar and solar streetlighting. The ministry also raised concerns over customs treatment of separately imported solar components, including reported differences affecting complete kits, batteries and inverters.
Solar streetlighting and performance-based maintenance could reduce electricity costs, cable theft and uncertainty over responsibility for keeping roads lit.
IMANI noted that historical ECG procurement commitments reportedly reached GH¢9.8 billion against a GH¢1.8 billion budget, although the figures require reconciliation. It also welcomed tighter spending priorities and the ministry’s interest in exploration incentives, investment and contractual disputes in the upstream petroleum sector.
The organisation called for a consolidated performance report and a 90-day accountability framework covering revenue recovery, losses, transformers, transmission, renewable projects and procurement.
It said Ghanaians needed reliable power, a sustainable energy sector, opportunities for local businesses and visible results from public spending – not another catalogue of attractive policies.
