Delays in energy sector recovery cost Ghana $1bn annually – World Bank

The World Bank has revealed that delays in implementing Ghana’s energy sector recovery programmes are costing the country approximately $1 billion each year, exacerbating the strain on public finances. Robert R. Taliercio, Director for Ghana, Liberia and Sierra Leone at the World Bank, made this disclosure during the launch of the World Bank’s Tenth Ghana Economic Update in Accra. He emphasized that persistent financial pressures in the energy sector pose one of the critical domestic risks to Ghana’s economic recovery.

Taliercio highlighted that the cost of $1 billion annually is substantial and warned that without prompt action to tackle sectoral challenges, some of the fiscal gains achieved through Ghana’s economic reform programme might be undone. He stressed that the energy sector remains a significant source of pressure on the country’s public finances and necessitates continued reforms to enhance its financial and operational effectiveness.

Additionally, Taliercio pointed out that the agricultural sector, especially the financial and operational issues within the Ghana Cocoa Board (COCOBOD), also contribute to fiscal pressures. He stressed that Ghana’s recent macroeconomic achievements must be backed by structural reforms to ensure the recovery is durable. While Ghana’s economy expanded by 6% in 2025 and further accelerated to 6.4% in the first quarter of 2026, public debt dropped from 70.3% of GDP in 2024 to 49% by the end of 2025.

However, Taliercio cautioned that the recovery is not yet fully structural, and maintaining fiscal discipline will be vital to preserving the gains.

Addressing the financial challenges in the energy sector, according to Taliercio, is crucial for safeguarding Ghana’s fiscal position and fostering a conducive environment for heightened private-sector investment and enduring economic expansion.