The Minister for Energy, John Abdulai Jinapor, has warned that Ghana’s energy sector debts have reached GH¢80 billion, emphasizing the need for urgent action. With the Electricity Company of Ghana (ECG) accounting for over GH¢60 billion of this debt, the financial strain is deemed unsustainable. Both Jinapor and Finance Minister Dr. Forson have called for structural reforms to avert a crisis, as the International Monetary Fund flags the sector as a significant financial risk.
The Minister for Energy and Green Transition, John Abdulai Jinapor, has raised alarm regarding the escalating debt in Ghana’s energy sector. During a conference with Civil Society Organizations (CSOs) on March 18, 2025, he revealed that total sector liabilities had surged to GH¢80 billion, emphasizing that the Electricity Company of Ghana (ECG) alone bears over GH¢60 billion of this debt.
Mr. Jinapor characterized the situation as unsustainable and stressed the urgent need for actions to alleviate the financial pressures. He remarked, “The rate at which debts are piling up in the energy sector makes it imperative to take drastic measures. If we do not act now, we risk a major crisis.” He highlighted financing as a core issue and encouraged CSOs to provide creative proposals aimed at restructuring the sector’s financial responsibilities.
Concurring with Mr. Jinapor, Finance Minister Dr. Cassiel Ato Forson had previously cautioned at a national economic dialogue on March 3, 2025, about the alarming trajectory of Ghana’s energy sector debt reaching $9 billion (GH¢126 billion) by 2027 without effective intervention. Dr. Forson underlined the necessity for fundamental reforms to stave off further complications.
Additionally, the International Monetary Fund (IMF) has identified Ghana’s energy sector as a significant financial vulnerability, noting legacy debts amounting to $2.1 billion (GH¢29.4 billion), representing 2.8% of the country’s Gross Domestic Product (GDP) as of December 2023. In light of these pressing issues, Mr. Jinapor committed to collaborating with CSOs to devise sustainable solutions and emphasized that transparency and comprehensive stakeholder engagement would be critical in addressing the challenges facing Ghana’s energy sector.
In summary, Ghana’s energy sector faces overwhelming debts totaling GH¢80 billion, prompting urgent calls from officials such as Minister Jinapor and Finance Minister Dr. Forson for immediate reforms. The risk of a financial collapse underscores the necessity for proactive measures, including collaboration with Civil Society Organizations and improved financial management strategies. Achieving stability in this sector is crucial for the country’s economic health.
Original Source: www.gbcghanaonline.com
