Ghana: When the shadow of debt looms over energy progress
In recent months, Ghana has faced tensions in energy supply. At the end of May 2025, the arrival of a cargo carrying 450,000 barrels of light fuel oil imported from Nigeria helped the country avoid a major electricity shortage. Today, the situation has returned to normal, with supply considered stable and even a surplus exported to some neighboring countries.
However, behind this relative stability lies a structural crisis: the energy sector debt. According to official data, it amounts to around 80 billion cedis (USD 5.6 billion). This debt, described by authorities themselves as “unsustainable,” represents a heavy burden on public finances.
The main challenge comes from the Electricity Company of Ghana (ECG), whose arrears exceed 60 billion cedis (USD 4.2 billion). A large part of this stems from contracts signed with independent power producers (IPPs). These agreements include so-called take-or-pay clauses, which require the state to pay for generation capacity even when it is not used. In October 2024, this situation forced the temporary shutdown of the Sunon Asogli thermal plant (560 MW) after a USD 259 million debt went unpaid.
To reduce arrears, Ghana’s Parliament adopted in June 2025 a 1 cedi per liter increase on petroleum products, expected to generate about 5.7 billion cedis annually. Despite this effort, the Ministry of Finance estimates nearly USD 3.7 billion will be needed to clear existing debts, while total sector liabilities already reached USD 3.1 billion at the end of March 2025. Without deep reforms, the cumulative deficit could exceed USD 9 billion as early as next year.
Thus, even though Ghana currently has sufficient power generation and exports surplus electricity, the sector’s fragility remains. Energy debt stands as one of the country’s biggest economic challenges, with direct consequences on macroeconomic stability. According to the World Bank, growth is expected to slow to 3.9% in 2025, compared to 4.2% in 2024, partly due to this situation.
