Energy Minister John Abdulai Jinapor warns that Ghana’s energy sector debt has reached GH¢80 billion, with ECG accounting for over GH¢60 billion. He calls for urgent action and stakeholder engagement to address financial issues. The Finance Minister and IMF echo these concerns, highlighting risks of rising debts in the sector.
The Energy and Green Transition Minister, John Abdulai Jinapor, has expressed alarm over the soaring debt in Ghana’s energy sector, now totaling GH¢80 billion. He emphasized the need for urgent action to avert financial collapse during a meeting with Civil Society Organisations (CSOs) on March 18, 2025. The Electricity Company of Ghana (ECG) is primarily responsible for this figure, contributing over GH¢60 billion.
Mr. Jinapor described the current debt situation as unsustainable and advocated for immediate measures. “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 warned. He highlighted financing as a critical issue and called on CSOs to provide suggestions for restructuring financial obligations in the sector.
His concerns align with warnings from Finance Minister Dr. Cassiel Ato Forson, who indicated that without immediate intervention, Ghana’s energy sector debt may increase to $9 billion (GH¢126 billion) by 2027. Dr. Forson urged for structural reforms to prevent further deterioration of the situation.
The International Monetary Fund (IMF) has also recognized the energy sector as a significant financial risk, noting legacy debts of $2.1 billion (GH¢29.4 billion) as of December 2023, which represents 2.8% of the nation’s GDP. Amid these challenges, Mr. Jinapor reassured CSOs of the government’s commitment to identifying sustainable solutions. He emphasized that transparency and extensive stakeholder engagement will be essential to address the energy challenges facing the country.
The growing debt crisis in Ghana’s energy sector, currently at GH¢80 billion, necessitates immediate attention to prevent financial collapse. The government’s commitment to transparency and collaboration with Civil Society Organisations is crucial in finding sustainable solutions. Both the Energy Minister and Finance Minister have called for urgent measures and structural reforms to stabilize the energy sector and avoid escalating debts.
Original Source: www.gbcghanaonline.com
