Ghana’s energy sector recorded a financial shortfall of about US$1.4 billion in 2025, equivalent to 1.2% of the country’s Gross Domestic Product (GDP), according to the Institute of Economic Research and Public Policy (IERPP).
The figure highlights the financial challenges facing the energy sector despite significant increases in electricity tariffs paid by consumers.
According to the IERPP, electricity consumers absorbed a cumulative tariff increase of about 40% from March 2025, but the sector still ended the year with a substantial financial gap.
The development raises concerns about the sustainability of Ghana’s energy sector and the financial burden placed on households and businesses through electricity tariff adjustments.
Higher electricity tariffs have been introduced in recent years as authorities seek to address rising operational costs and financial pressures within the energy sector.
However, the latest figures suggest that tariff increases alone have not been enough to close the sector’s funding gap.
The energy sector remains a major part of Ghana’s economy, supporting households, businesses and industries across the country.
Financial difficulties within the sector can therefore have wider implications for economic growth, business operations and government finances.
The reported shortfall also comes at a time when the government continues to face pressure to improve the reliability of electricity supply while reducing the financial burden associated with the sector.
