Energy sector needs urgent reforms to avoid collapse – Mahama

President-elect John Dramani Mahama has raised an alarm over the precarious state of Ghana’s energy sector, describing it as a critical area requiring immediate and comprehensive reforms.

Mahama has emphasised the urgency of addressing the sector’s challenges to safeguard the nation’s economic stability.

He made this public during a courtesy call by the Canadian High Commissioner to Ghana, Myriam Montrat, in Accra on Thursday, December 19.

“The energy sector needs urgent surgery; otherwise, it can collapse everything,” he noted.

The President-elect expressed concern over the mounting debt burden in the energy sector, which he believes undermines any narrative of economic recovery.

“You have a $2.5 billion debt, your bailout is only $3 billion, and so $2.5 billion sitting and breathing, and you say the economy is turning around,” Mahama stated, criticising the outgoing administration’s portrayal of economic progress.

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He cautioned that the unresolved debt could destabilise any advancements made, describing the current government’s optimism as misleading.

“That alone can crush everything that has been done, and so they want to create a more upbeat story about their economic management before they leave office,” he said.

Mahama further reiterated his administration’s pledge to prioritise the energy sector, focusing on reforms to enhance efficiency, sustainability, and the reliability of energy supply across the country.

In recent times, the power sector has experienced outages and load shedding without any clear explanation from the government regarding the actual cause.

It has, however, been established that the government owes power producers approximately $2.5 billion, with no apparent efforts being made to settle the debt.

Meanwhile, Mr. Mahama has also assured Ghanaians of his administration’s transparency, vowing to disclose the true state of the economy upon taking office.

“We are going to open the books when we come and let Ghanaians know what the true situation is. Because if Ghanaians understand what the true situation is, then they will understand some of the measures we will have to take to bring things back,” Mahama said.

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