Economist urges radical energy sector reforms to alleviate Ghana’s fiscal burden
Economist Leslie Mensah of the Institute for Fiscal Studies has called for sweeping reforms in Ghana’s energy sector, citing its significant financial strain on the government’s balance sheet. Speaking during an interview with ghnewshub.com, Mensah stressed the urgency of addressing inefficiencies and mismanagement within the sector, which currently costs the government over GH₵20 billion annually.
He described the current financial outlay to address shortfalls in the energy sector as unsustainable, stressing the need for an overhaul of pricing decisions, service delivery, and overall management practices. According to Mensah, the ongoing reforms are insufficient in scale to address the sector’s deeply rooted problems.
“The way we manage the sector, from leadership selection to setting performance benchmarks, must undergo significant transformation,” Mensah said. He pointed to persistent distribution losses exceeding 20% as a major area of concern, emphasizing the need for a radical program to bring these losses to acceptable limits.
Mensah also underscored the broader economic benefits of energy sector reforms, noting that savings realized from addressing inefficiencies could be redirected to reduce taxes, providing relief to businesses and individuals alike.
While acknowledging the government’s current reform efforts, Mensah urged more aggressive measures to ensure the sector’s sustainability and reduce its heavy toll on public finances.
