• Ghana exports surplus electricity despite $5.6 billion in sector debt.
• ECG owes $4.2 billion to power producers and gas suppliers.
• Government expects sector deficit to top $9 billion in 2026 without reforms.

Ghana has stabilized electricity supply in recent months and started exporting surplus to neighboring countries, Energy Minister John Abdulai Jinapor said on September 8 in Accra.

The announcement follows a period of supply stress earlier this year. In late May, an imported shipment of about 450,000 barrels of light fuel oil from Nigeria helped the country avoid blackouts.

Despite the improved supply, Ghana’s energy sector faces a debt of 80 billion cedis ($5.6 billion), according to official data. Jinapor had described the level as “unsustainable” in March during a meeting with civil society groups.

The Electricity Company of Ghana (ECG) accounts for more than 60 billion cedis ($4.2 billion) in arrears to power producers and gas suppliers. These obligations mainly arise from take-or-pay contracts with independent power producers that require the state to pay for capacity even when unused.

Payment delays have already disrupted operations. In October 2024, the Sunon Asogli thermal plant (560 MW) shut down temporarily after the government failed to settle $259 million in arrears.

On June 3, 2025, Parliament approved a levy of 1 cedi per liter on petroleum products. The measure aims to raise about 5.7 billion cedis annually to reduce arrears.

Greater electricity availability comes from improved gas supply and diversified sources. However, these gains depend on rising debt. The Finance Ministry reported $3.1 billion in outstanding energy debt at the end of March 2025 and estimates another $3.7 billion is needed to clear arrears.

Without corrective action, cumulative sector deficits could exceed $9 billion next year.

Although Ghana exports electricity surpluses, the structural debt continues to weigh on public finances and remains one of the country’s main economic challenges.

In mid-August, the World Bank projected Ghana’s economy to expand by 3.9% in 2025, slowing from 4.2% in 2024.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum