The Government of Ghana mobilized GH₵8.67 billion in energy sector levies in 2024, falling short of its revised target by GH₵553.92 million. The 6% gap, though narrower than the 11% deficit recorded in 2023, highlights enduring structural inefficiencies plaguing the energy value chain.
The figures, disclosed in the 2024 Annual Report on the Management of Energy Sector Levies and Accounts released by the Ministry of Finance, point to a systemic underperformance that has now persisted for three consecutive years. In 2022, the gap stood at 8%.
Despite the underwhelming outturn, 2024’s collections still represent a 12.1% increase over the previous year’s target of GHS 8.23 billion, suggesting a marginal improvement in revenue mobilization amidst significant headwinds.
The original projection for 2024 stood at GHS 9.59 billion but was trimmed to GHS 9.23 billion during the Mid-Year Budget Review. The downward revision was prompted by a recalibrated non-oil GDP forecast, which impacted expectations for Road and Energy Fund levies.
Actual collections fell short of this revised benchmark, closing at GHS 8.67 billion. More concerningly, only 93% of these collections amounting to GHS 8.07 billion were lodged into the designated ESLA accounts. The 7% lodgment shortfall echoes similar challenges recorded in previous years and underscores persistent issues in funds disbursement.
Utilization trends were also consistent with past patterns, with roughly 75% of lodged funds disbursed in 2024 mirroring 2023 levels. The low conversion rate of collections into effective utilization continues to cast doubt on the operational efficiency of ESLA mechanisms.
2024 also marked the official phasing out of the ESLA Bond Programme, including the dissolution of E.S.L.A. PLC, the special-purpose vehicle established to securitize levy inflows. The wind-down represents a pivotal shift in energy sector financing, with implications for debt servicing and fiscal management going forward.
Finance Minister Dr. Cassiel Ato Forson did not mince words in his assessment of the sector’s ongoing turmoil.
“These figures are symptomatic of a broader malaise afflicting Ghana’s energy sector. Without decisive interventions, the inefficiencies undermining ESLA risk spilling over into the macroeconomic space,” Dr. Forson cautioned.
“We must do better through tighter collection systems, better enforcement, and renewed policy discipline to fully unlock the transformative potential of ESLA in advancing energy security,” he added.
As Ghana pivots toward energy transition goals and works to stabilize its fiscal framework, the performance of ESLA will remain a litmus test for both financial governance and energy sector reform. The coming years will be critical in determining whether ESLA can evolve from a revenue mobilization tool into a cornerstone of sustainable energy financing.
