In one of the most sweeping economic reform packages in recent memory, the Government of Ghana has unveiled a transformational policy agenda backed by over GH¢22 billion in targeted investments to reshape the nation’s energy architecture, unlock new value from its gold resources, and mount an aggressive defence of its lands and waterways from environmental destruction.
The comprehensive programme, outlined in the 2026 Budget Statement and Economic Policy presented to Parliament, signals a decisive pivot toward energy self-sufficiency, industrial value addition, and environmental restoration — with implementation already underway across multiple fronts.
Energy Sector: A GH¢22 Billion Rescue and Expansion Plan
At the heart of the government’s reform agenda lies an unprecedented financial commitment to stabilize and expand Ghana’s troubled energy sector.
The government has allocated GH¢15.2 billion to address accumulated energy sector shortfall payments that have long strangled cash flow across the power value chain.
An additional GH¢4.8 billion has been earmarked to clear legacy debts owed to Independent Power Producers (IPPs) in 2026 — a critical intervention to restore investor confidence and stabilize long-term power supply contracts.
Finance Minister Dr. Cassiel Ato Forson told Parliament that cumulative shortfalls had reached alarming levels, with the sector recording a $2.2 billion deficit in 2024 alone despite government transfers exceeding $2 billion. The new funding injection aims to break this cycle of arrears while the government pursues deeper structural reforms.
Central to the transformation is the Gas-to-Power Strategy, which will phase out the costly use of light crude oil for electricity generation in favour of domestically produced natural gas.
Officials project this transition will slash power generation costs by at least 75%, dramatically reducing the fiscal burden on the national budget while cutting carbon emissions from the electricity sector.
In a move that captured national attention, the government announced plans to commence construction in 2026 of a 1,200-megawatt state-owned thermal power plant — a facility that would exceed the generation capacity of the iconic Akosombo Dam. The plant will utilize an additional 150 million standard cubic feet of gas daily from Offshore Cape Three Points (OCTP) partners and the Ghana Gas Processing Plant 2 (GPP-2).
“Mr. Speaker, 1,200 megawatts is bigger than what our almighty Akosombo can produce,” Dr. Forson declared, underscoring the historic scale of the investment.
To extend electricity access nationwide, the government has committed GH¢2 billion for Phase 1 of the Rural Electricity Acceleration and Urban Intensification Initiative, targeting underserved communities and strengthening urban distribution networks in support of the administration’s 24-hour economy vision.
Gold Sector…
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