The World Bank has downgraded Ghana’s Energy Sector Recovery Programme from “Moderately Satisfactory” to “Unsatisfactory”, citing significant delays in implementation due to financing constraints, election-related disruptions, new procurement controls, and slow action by implementing agencies.
In its latest implementation report dated June 30, 2026, the Bank noted that the lack of Commitment Authorizations from the Ministry of Finance, combined with new fiscal controls and procurement restrictions, had stalled several key reforms in the electricity sector.
The Energy Sector Recovery Programme was approved in June 2024 and became effective in March 2025. Its main objectives are to improve the financial sustainability of the Electricity Company of Ghana (ECG) by strengthening operational efficiency, reducing revenue shortfalls, and expanding access to clean cooking solutions.
The latest assessment presents a mixed picture. Only one programme indicator was fully achieved during the reporting period, ECG successfully published its audited financial statements for the 2025 financial year in May 2026. However, these statements are still not publicly available on ECG’s website.
Three other indicators were rated as either “Partially Achieved” or “Progressing”. ECG has implemented its energy accounting system in only 20% of operational districts, making the target of nationwide rollout likely to be missed. The customer service improvement indicator was also only partially achieved, as the 2025 customer satisfaction survey results remain in draft form and unpublished.
The first phase of the National LPG Promotion Programme was rated as partially achieved, with approximately 38,000 people receiving clean cooking solutions far below the target of 457,000 and implementation has stalled.
Four other programme indicators were rated as “Not Achieved” or off track. GRIDCo has yet to submit the required Security Constrained Economic Dispatch methodology to the Energy Commission or procure the necessary consultants. ECG’s collection efficiency has also worsened, currently standing at 85%, below the baseline of 86% and well off the 93% target set for the end of 2027. Additionally, ECG has not integrated an Independent Power Producer invoicing system into its financial management software.
The combined financial losses of ECG and the Northern Electricity Distribution Company (NEDCo) have risen to approximately $1.5 billion, instead of declining toward the programme target of $525 million by the end of 2027.
The World Bank identified several contributing factors to the poor performance, including the repeated lack of Commitment Authorizations from the Ministry of Finance. This has delayed the distribution of LPG stove packages, the installation of over one million smart meters, and other critical activities.
New procurement directives and disbursement caps introduced by the Ministry of Finance further slowed implementation. The programme was also affected by the 2024 national elections and the subsequent transition to a new administration.
Despite the downgrade, the World Bank expressed hope that implementation could accelerate if coordination between government and implementing agencies improves, particularly regarding approval processes.
The Energy Sector Recovery Programme is central to Ghana’s efforts to reduce electricity sector losses, strengthen ECG’s finances, and ease the overall fiscal burden of the energy sector. Its importance has grown, especially as the government transferred GH¢12.9 billion from the treasury to support energy sector payments in 2025, despite the introduction of an additional GH¢1 levy on petroleum products.
The downgrade highlights that restoring the sector’s financial health will require not only raising additional revenue but also sustained implementation of structural reforms aimed at improving operational efficiency.
Editor:
Obiri-Yeboah
