Energy sector debt hits $3b: Energy Minister-Designate calls for urgent action 

Ghana’s energy sector is facing a critical challenge with its debt burden escalating to over $3 billion as of January 12, 2025, Mr John Abdulai Jinapor, Energy Minister-Designate has revealed. 

Mr Jinapor made the revelation about the growing debt during his vetting before the Parliament’s Appointments Committee at the Parliament House, Accra on Monday. 

He told the Committee that the debt, which stood at $2.1 billion as of August 31, 2017, had increased significantly, compounding existing challenges, particularly the government’s financial obligations to Independent Power Producers (IPPs), which stood at $1.2 billion as of October 2024. 

Mr Jinapor attributed the mounting debt to unaccounted-for power sales, emphasising the need for immediate measures to address the issue.  

” …Mr Chairman when we left office on August 31, 2017, the debt was $2.1 billion. As of yesterday, January 12, 2025, the outstanding debt has exceeded $3 billion,” Mr Jinapor said. 

He called for pragmatic solutions to resolve the debt crisis, to ensure the sustainability of the energy sector while safeguarding Ghana’s economic stability. 

The energy sector’s debt crisis had been a longstanding challenge, with experts warning that the government’s inability to pay its debts to IPPs could lead to a power crisis. 

The International Monetary Fund (IMF) has also cautioned that Ghana’s energy sector debt was expected to remain above $1 billion unless the government implements effective measures to address the issue. 

On Thursday January 9, President John Dramani Mahama submitted his first batch of ministerial nominations to the Speaker of Parliament in accordance with Article 78 of the 1992 Constitution of Ghana.  

The nominees are Dr Cassiel Ato Baah Forson, as Minister of Finance Designate; Mr John Abdulai Jinapor, Minister of Energy Designate; and Dr Dominic Akuritinga Ayine, as the Attorney -General and Minister of Justice Designate. 

Source: GNA 

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