Ghana’s energy sector debt has surged to GH¢80 billion, with ECG accounting for over GH¢60 billion. Energy Minister John Abdulai Jinapor called for immediate action to prevent a crisis. Finance Minister Dr. Cassiel Ato Forson warned that debt could rise to GH¢126 billion by 2027 without urgent reforms. The IMF has labeled the sector a significant financial risk, urging sustainable solutions.
John Abdulai Jinapor, the Minister for Energy and Green Transition, has expressed alarm regarding the escalating debts within Ghana’s energy sector, currently totaling GH¢80 billion. Of this, the Electricity Company of Ghana (ECG) is responsible for over GH¢60 billion. Mr. Jinapor characterized the situation as unsustainable and emphasized the necessity for immediate intervention to avert a potential financial crisis.
During a meeting with Civil Society Organisations on March 18, 2025, Mr. Jinapor underscored the urgent need for drastic measures, cautioning that without timely action, a significant crisis may ensue. He identified inadequate financing as a primary hurdle and encouraged CSOs to propose solutions for restructuring the sector’s financial framework.
His statements resonate with warnings issued by Finance Minister Dr. Cassiel Ato Forson, who, during a national economic dialogue on March 3, 2025, indicated that the energy sector’s debt could reach GH¢126 billion ($9 billion) by 2027 if no measures are taken. Dr. Forson highlighted the importance of implementing structural reforms to mitigate the ongoing financial challenges.
Additionally, the International Monetary Fund (IMF) has recognized Ghana’s energy sector as a significant financial risk, with legacy debts amounting to $2.1 billion (GH¢29.4 billion), equating to 2.8% of the country’s Gross Domestic Product (GDP) as of December 2023. Mr. Jinapor assured stakeholders that the government is dedicated to identifying sustainable solutions to stabilize the energy sector, emphasizing transparency and engagement with various stakeholders as critical factors in resolving these issues.
The escalating debt crisis in Ghana’s energy sector, reaching GH¢80 billion, necessitates immediate action to avert a catastrophic financial collapse. Both the Minister for Energy, John Abdulai Jinapor, and Finance Minister Dr. Cassiel Ato Forson have called for urgent reforms and stakeholder engagement to address the challenges facing the sector. Continuous monitoring and strategic solutions are essential to ensure the stability and sustainability of Ghana’s energy infrastructure.
Original Source: www.gbcghanaonline.com
