The Ghana Grid Company Limited (GRIDCo) has warned that the Mahama administration will need to ensure that, there is additional power generation of up to 244 megawatts before end of 2025 to ensure stable power.
This was contained the GRIDCo report titled, “Power Supply Outlook For The WAGP Offshore Pigging From January 20 – February 16, 2025 And Projections For 2025”.
The report captured the dire situation left behind by the NPP administration led by Nana Akufo- Addo and Dr Mahmud Bawumia. If not for the swift intervention of the current administration’s proactiveness to call for an emergency meeting among stakeholders in the energy sector led by the Chief of Staff, Julius Debrah, to secure fuel for use by the thermal plants in Tema and the subsequent postponement of the West African Gas Pipeline Company Limited planned maintenance by two weeks, Ghanaians would have had to endure major load shedding in coming days.
“There will accordingly be the need to secure additional generation resources with dependable capacity of at least 244.66 MW by the last quarter of the year to ensure sustained supply adequacy by the end of the year”, the report noted. “This additional capacity could be realised from the timely completion of installation and commissioning of the last four (4) units at the Anwomaso Thermal Power Station, the AKSA thermal power plant, or the CENIT power plant project all currently under construction in Kumasi.
“There will also be a need to secure additional 129 mmcfd of natural gas supply (or equivalent volumes of liquid fuels) in order to have enough fuel for thermal generation in Ghana in 2025.” Power demand is projected to grow steadily to an annual peak of 4,415.42MW by the last quarter of 2025.
The Finance Minister designated, Dr Casiel Ato Forson, has assured Ghanaians to expect the first budget of the current administration to abolish E-levy, betting tax and COVID-19 levy.
He made this revelation during his vetting in Parliament today.
The Minister designate, insisted that those taxes are nuisance taxes which he cannot easily identify their nature as either they are direct or indirect taxes.
“The betting tax brings in less than GHC50 million annually”, Dr Ato Forson posited. “Such tax if scrapped cannot affect the country.”
Also, he explained that, the introduction of the E-levy fights the cashless economy agenda successive government have intended to pursue.
“Elevy will be abolished in first budget within the 120days as promised”, he said.
The Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately suspend all payments for supplies as part of a broader strategy to address inefficiencies and stabilize the power sector.
Jinapor emphasized that this directive is backed by the Chief of Staff and aims to halt financial leakages within the company.
Highlighting ECG’s financial struggles, Jinapor revealed that the company is grappling with significant revenue losses, with over 40% of generated power unaccounted for. He warned ECG staff, particularly those in the finance directorate, that ignoring the directive would lead to severe consequences.
“The challenge of money emanates from inefficiencies,” Jinapor said in an interview last week after his nomination. “If ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution.”
He is worried that, while other countries are doing just about 2-4% losses. In Ghana, for each US$100 worth of power, ECG collects only 60%.
“On top of that, there are numerous deductions for contracts, quality assurance, IT, and other provisions” he added.
Jinapor also pointed out that ECG operates over 70 accounts, making effective monitoring and control nearly impossible.
As part of his reform agenda, he pledged to streamline the company’s operations by consolidating its accounts and implementing measures to ensure financial discipline.
“All those numerous accounts will be closed. We need some serious buffers to anchor the system. This sector needs reform, and we will reform it,” Jinapor stressed.
The Minister-Designate assured the public that these measures are necessary to stabilize the power sector and improve service delivery, promising significant reforms to enhance the efficiency of ECG’s operations.
Meanwhile, President John Dramani Mahama has signalled the potential privatisation of the Electricity Company of Ghana (ECG) as part of efforts to tackle longstanding inefficiencies in the country’s power distribution system. Speaking during a meeting with a World Bank delegation at his private office in Accra last week, President Mahama expressed confidence that private sector involvement could help resolve critical challenges such as operational inefficiencies, financial mismanagement, and poor service delivery within ECG.
“If we don’t fix the Electricity Company of Ghana, we will continue to face major problems across the entire power value chain,” President Mahama said, underscoring the urgency of reforms. He asserted that privatising ECG’s distribution operations could introduce the efficiency required to modernise the energy sector and meet Ghana’s increasing energy demands.
Reflecting on Ghana’s earlier engagement with the Millennium Challenge Corporation (MCC) Compact during his tenure as Vice President, Mahama emphasised the pivotal role of an efficient energy distribution system in driving national development goals.
The President reassured stakeholders that any decision to privatise ECG would be approached cautiously, with extensive consultations to balance public interest and the sector’s need for improved performance.
“We want to engage with the World Bank to leverage their expertise in implementing this initiative,” he stated.
Mahama further explained that privatisation would form part of a broader strategy to modernise Ghana’s energy infrastructure, ensuring sustainability, reliability, and enhanced service delivery
for citizens and businesses.
Also, further to solving the dire, critical situation of ECG’s management, the Member of Parliament for Evalue-Ajomoro-Gwira, Arko Nokoe, has advocated for strategic reforms in Ghana’s power sector to minimize losses and enhance efficiency. The legislator, in an interview last week, expressed frustration over the bureaucratic processes in the retail chain, which he believes foster inefficiencies, wastage, and theft.
“Why can’t ECG privatize the retail aspect of our power sector?” he questioned. “It’s incredible how customers struggle to acquire a new meter. This system needs a shake-up.”
The MP emphasized the importance of introducing private sector players to the retail side of electricity distribution. He proposed reforms that would allow private entities to handle critical
areas like the supply of transformers, metering, and the sale and purchase of electricity.
“It’s about time we had other players within the retail aspect of our energy sector,” he stated, adding that competition and innovation would drive efficiency and improve customer satisfaction. “Government remains ECG’s largest debtor, accounting for over 80% of the company’s debt. This is unacceptable,” he lamented. “We cannot expect the ECG to function efficiently when its largest client fails to honor its obligations. It’s time for the government to lead by example and settle its debts promptly. If we want to see real progress, this must change.”
The MP stressed that addressing the government’s debt and privatizing the retail aspect of the power sector could create the financial stability and operational efficiency needed to stabilize and transform Ghana’s electricity distribution framework.
Nokoe’s call comes at a time when the new NDC government is faced with a looming “dumsor” challenge. His proposal adds to the ongoing discussions on how best to revamp the country’s energy sector for sustainable growth and development.
The nomination of Dr Cassiel Ato Forson as finance minister has come with many congratulations and affirmations of confidence in his capabilities.
Among the lot is a Labour Consultant, Austin Gamey, who has praised Dr Ato Forson’s expertise and his suitability as Finance Minister-designate to tackle Ghana’s economic challenges.
He belief the Minister-designate can address the country’s prevailing economic difficulties describing Dr Forson’s expertise and experience as perfectly suited to the needs of the job.
“You need people with a certain depth of knowledge and ability to add value to what you want to achieve,” he stated. “Ato Forson is a classic example of someone who fits the bill, especially in these challenging times.”
“Ato Forson has proven that he thoroughly understands these areas and knows how to collaborate with stakeholders to find effective solutions,” he said.
The labour consultant also emphasised Dr Forson’s leadership qualities and track record in public service. Having served as Deputy Minister of Finance, ranking member of the Finance Committee in Parliament, and now Majority Leader, Dr Forson’s extensive experience positions him as a capable leader. This background gives him an unmatched understanding of the fiscal and economic landscape,” Mr Gamey remarked.
He encouraged Ghanaians to rally behind Dr Forson and the administration, stressing the importance of teamwork to tackle inflation, the cost of living, and economic recovery.
“All he needs is our backing and prayers to succeed. The challenges ahead are significant, but with his capacity, I am confident he will deliver,” he asserted.
Also, Franklin Cudjoe, the Founder and President of IMANI Africa, has described Dr Ato Forson’s appointment as a “sensible” decision. In his post, Mr Cudjoe contrasted Dr Forson’s nomination with what he considered the failings of the outgoing administration’s finance leadership.
He criticised the previous Finance Minister for pursuing overly ambitious financial projects, such as a proposed $50 billion century bond, which he described as “delusional,” and highlighted controversial policies like the Agyapa deal.
“Ato Forson for Finance Minister. Sensible appointment,” he wrote. “Thankfully, he is not an overhyped investment banker who would have wet dreams of some delusional $50bn century bond his predecessor entertained in spite of the odious debts he had accumulated. Worse, he was planning to mortgage our gold resources through very bad deals like Agyapa.”
His remarks underscore the weight of expectations for Dr Forson to steer Ghana’s economy responsibly and avoid the pitfalls of past financial management.
Dr Forson’s nomination signals the government’s intention to focus on stabilising the country’s economy and implementing key fiscal reforms to drive growth and development.
Dr Ato Forson is no stranger to the Finance Ministry, having previously served as a Deputy Minister for Finance under President Mahama’s administration. During his tenure, he was instrumental in managing Ghana’s fiscal policies, negotiating key financial agreements, and supervising economic initiatives aimed at strengthening the country’s financial health.
A look at the profile of Dr. Cassiel Ato Baah Forson.
He is a lawmaker in the Parliament of Ghana. He is an economist of great repute with deep insight, particularly on the economy of Ghana. He is a Chartered Accountant and a Tax Practitioner with over 20 years’ experience in the public and private sectors.
His professional expertise covers macroeconomics, fiscal policy, tax policy and administration, finance and business management. Dr. Forson is an Oxford-trained tax professional with a Master of Science degree in taxation from the University of Oxford, UK and a Fellow of the Chartered Institute of Taxation, Ghana. He also holds a Bachelor of Science degree in accounting from London South Bank University and is a member of the Institute of Chartered Accountants, Ghana (ICAG). He obtained a Ph.D in Finance and a Master of Science degree in Economics from the Kwame Nkrumah University of Science and Technology (KNUST), Ghana.
Dr. Forson has represented the people of Ajumako Enyan Essiam constituency in the Central Region as their Member of Parliament since 2009. In January 2023, Dr. Forson assumed office as the Minority Leader in Parliament. Prior to this, he was the Ranking Member of the Finance Committee of Parliament for six years. From 2009 to 2013, he was a member of the Finance Committee of Parliament and also served as the Vice Chairman of the Committee on Foreign Affairs from 2009 to 2011.
Dr. Forson served as the Deputy Minister for Finance of the Republic of Ghana from April 2013 to January 2017, overseeing Budget Preparation and Implementation, Medium-Term Expenditure Framework (MTEF), Treasury and Debt Management, External Resource Mobilisation and Tax Policy and Administration.
As a Deputy Minister for Finance, Dr. Forson also served as a Member of the Board of Directors of the Bank of Ghana and Ghana Cocoa Board (COCOBOD), a member of Ghana’s Economic Management Team and Ghana’s Alternate Governor to the International Monetary Fund (IMF).
Dr. Forson was instrumental in negotiating the Ghana-IMF Extended Credit Facility (ECF) Programme in 2015. He also championed the introduction of Ghana’s model Public Financial Management Act 2016 (Act 921).
Dr. Forson is currently the Majority Leader and Leader of Government Business in the Parliament of Ghana.
President John Dramani Mahama has ordered the Chief of Staff to meet with Ghana Education Service to see to immediate distribution of foods to Senior High Schools.
In past days, there have been complains of food shortages in some SHSs.
This was an inherited situation from previous Nana Akufo-Addo administration.
However, acting on the Executive power, President Mahama speaking at the Thanksgiving service at the UPSA in Accra relieved the SHSs of the pending crisis.
The Mahama administration has directed the Lands Commission to submit to the presidency documents on all sold State and Public lands within 14 days from January 10,2025.
The four days old government also ordered immediate halt on selling and processing of State and Public Lands.
“The directive is issued in utmost good faith to protect public lands for benefit of citizens and future generations” a statement signed by the Secretary to the President, Calistus Mahama said.
Per the Executive Instrument (E.I 1) 2025, President John Dramani Mahama has reduced the number of Ministries from 30 to 23.
This is captured the Civil Service (Ministries) Instrument 2025 in exercise of the powers conferred on the President under section 11(3) of the Civil Service Act, 1993 (PNDCL 327).
The new E.I. comes into effect on January 9, 2025.
A finance expert has admonished the John Mahama administration to pay much attention to the foreign remittance sector.
Dr Richmond Atuahene notes that, foreign remittance sector is very huge which can end Ghana’s cyclical ritual of seeking relief from the International Monetary Fund (IMF) and other multilaterals.
Indicating that, remittances alone if tracked properly and allow all to pass through the banking system, it will be huge than the IMF $3 billion loan and other multilateral supports which mostly come with harsh conditions that affect ordinary citizens.
“So the first thing that I want to advise the President is that, he must strengthen the remittance or even create a new unit at the Central Bank, like Bangladesh gets 95% of remittances through the banking system. We get just about 50% so the other 50% doesn’t go into the banking system”, Dr Atuahene said in an interview last week.
“Even remittances alone will be bigger than the IMF loan. If we are able to track it, we will not go and beg for 3 billion dollars.”
He further expatiated that, “In 2023, the World Bank told us 4.7 billion, we track only 2.8 billion so 1.9 billion is gone. Previously, 4.2 billion we track 2.1 billion, those things are gone. But, if we put in a strong system, we will be able to track more. “Once we are able to track the remittances very well, it will help the management of the economy and also help the cedi to stabilize to bring inflation down.”
He also said the President must assembly technocrats who will help devise strategies on how to finance the nation’s huge debts owed to contractors.
“He must appoint people who understand the microeconomic issues to help you, that will be the biggest plus for him. Then the next one will be financing the debts, I am talking about the 31 million constructors’ debts and the energy.
“His Excellency must get a team as they had in 2010. You have a credible arrears repayment plan. So that maybe by three, or four years you have cleared and not created a new one. If you do that, I think the mantle is high but it makes it surmountable. I think with the brains and technical people if they allow them to help them they can achieve a lot in four years,” Dr. Atuahene noted.
President John Dramani Mahama has assured the business community that Ghana is once again open for business.
In his inaugural speech at the swearing in ceremony held yesterday January 7, 2025, he reaffirmed Ghana’s commitment to a business-friendly environment, emphasizing his government’s focus on economic restoration.
Over the years many businesses have complained with others pulling out of Ghana completely due to unbearable cost of doing business in the country. However, the Mahama administration acknowledges the importance of fostering a business-friendly environment to drive economic growth.
“To the business leaders and entrepreneurs, I invite you to support this new model and join me in shaping a business environment where creativity thrives and the fruits of your investments contribute to the collective welfare of our nation,” Mahama stated.
He expressed his administration’s commitment to creating a more stable microeconomic environment and enhancing the business and investment climate in the country.
“Your role in driving our economy forward cannot be overstated. Your innovation and dedication will be the backbone of our success story.”
Other major highlights of Mahama’s speech was his focus on a “24-hour economy” aimed at stimulating local industries, creating jobs, and attracting foreign investments. He explained that this model would provide opportunities for young entrepreneurs and empower every Ghanaian to contribute to the nation’s progress.
“In this vision, we will unlock potential that has long remained dormant, allowing us to harness the energy and creativity of all our people,” Mahama added.
The President also pledged to review and rationalize the tax regime to ensure it is transparent, fair, and conducive to business growth.
“We are committed to creating an inclusive, equitable society where everyone has a seat at the table,” Mahama concluded, reaffirming his commitment to creating a prosperous future for Ghana through collaboration with the business community.
First of batch of President John Mahama minister designates
President John Dramani Mahama has announced the first set of ministerial nominees per the constitutional mandate vested in him.
Hon. Dr Cassiel Ato Forson has been nominated Finance Minister designate, Dominic Ayine appointed Minister of Justice and Attorney General and John Abdulai Jinapor as Energy Minister designate.
