Ghana to reduce $2.5bn debt to power producers by year end

GlobalData

Wed, May 14, 2025, 4:47 AM 2 min read

Ghana's Government has announced its volition to importantly trim the country's $2.5bn (31.27bn cedis) indebtedness owed to autarkic powerfulness producers and state suppliers by the extremity of the year, according to a Reuters report.

President John Dramani Mahama expressed assurance successful addressing the fiscal challenges facing the powerfulness assemblage during a forum successful Ivory Coast.

Last year, Ghana reached a restructuring statement with autarkic powerfulness producers to negociate astir $1bn of bequest debt.

Despite this, the nation's arrears person continued to interaction the economy, peculiarly since President Mahama began his 2nd word successful January.

President Mahama acknowledged inefficiencies wrong the state-owned utility, Electricity Company of Ghana (ECG), which faces a gross postulation nonaccomplishment of astir 40%.

To amended the situation, helium announced plans to impact the backstage assemblage successful the billing process.

Mahama was quoted arsenic saying: “People are queuing up, I said they should wait. We are going to bash expressions of interest,” indicating a cautious attack to selecting backstage partners for this initiative.

The furniture is yet to determine connected the operation of this partnership, which whitethorn impact 1 oregon aggregate entities, with an accent connected section participation.

President Mahama besides encouraged companies to expedite lipid and state extraction, citing the planetary vigor transition.

“Oil is successful modulation and truthful everybody who has immoderate assets should beryllium pumping similar determination is nary tomorrow... I would laic a reddish carpet to anybody who wants to drill and pump lipid to bash so,” helium added.

In related news, the Mission 300 initiative, which aims to electrify 300 cardinal Africans by 2030, secured much than $8bn successful caller backing commitments during the Africa Energy Summit successful Dar es Salaam, Tanzania.

"Ghana to trim $2.5bn indebtedness to powerfulness producers by twelvemonth end" was primitively created and published by Power Technology, a GlobalData owned brand.

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