• Ghana and the World Bank agree to strengthen cooperation in five priority areas.
• Energy sector aid aims to support resilience, diversification, and reforms.
• The move comes amid growing debt and high technical losses in the power grid.

On Wednesday, October 15, Ghana and the World Bank agreed to deepen their cooperation in five priority sectors, including energy, following a meeting between Finance Minister Cassiel Ato Forson and World Bank Group President Ajay Banga on the sidelines of the IMF and World Bank Annual Meetings.

According to Ghanaian media, the decision aims to “accelerate Ghana’s transition toward a more resilient, inclusive, and sustainable economy.” Energy was identified alongside education, health, road infrastructure, and agriculture as key pillars to support the country’s development priorities.

Both parties confirmed the principle of enhanced World Bank support for ongoing and future projects in these areas. Although no specific energy project has been announced yet, Ghana is counting on this cooperation to help restore a sector weakened by rising debt and major technical losses.

The Ministry of Finance reported that energy sector debt stood at $3.1 billion as of March 2025, including $1.73 billion owed to independent power producers. According to the Energy Commission, the state-owned Electricity Company of Ghana (ECG) recorded 32% distribution losses in 2024, its highest level in two decades.

With an electricity access rate of about 89%, one of the highest in Sub-Saharan Africa, Ghana is working to stabilize and diversify its energy supply. Despite significant renewable potential in hydropower, solar, wind, and biomass, the national grid remains dependent on imported fuels.

The World Bank’s expected support comes as the government seeks to modernize the power grid, strengthen sector governance, and accelerate the energy transition under the National Energy Transition Framework.

Several World Bank-backed programs are already underway to support the country’s energy mix, including the Ghana Energy Sector Transformation Project and the Scaling Up Renewable Energy Program.

As reported by Ecofin Agency in April, a joint report by ActionAid Ghana and the Centre for Research on Multinational Corporations (SOMO) criticized Ghana’s current energy policy choices, arguing that the influence of institutions such as the World Bank increases the country’s fiscal vulnerability.