Ghana: President Mahama vows to reduce energy sector debt by end of 2025
Ghanaian President John Dramani Mahama announced on Tuesday his administration’s commitment to significantly reduce the country’s $2.5 billion energy sector debt by the end of the year. The debt, owed to independent power producers and gas suppliers, remains a heavy burden on Ghana’s economy.
John Dramane mahamr
Photo LNT
Speaking on the sidelines of an economic forum held in Ivory Coast, Mahama noted that progress is already underway. A first tranche of $1 billion was renegotiated in 2024 as part of a broader restructuring plan. “I am confident that by next year, our partners will be satisfied,” the president said.
Mahama also criticized the structural inefficiencies within the state-owned Electricity Company of Ghana (ECG), which reportedly loses up to 40% of its revenue due to poor billing and collection systems. To address the issue, the government is considering involving the private sector, launching a call for expressions of interest for managing the company’s billing operations.
“The cabinet will soon decide on the format—whether a single or multiple private partners—but local participation remains a priority,” he added.
On the energy production front, the president encouraged companies to ramp up oil and gas extraction efforts, warning that the global shift toward renewables could soon diminish the value of Ghana’s fossil fuel reserves. “Oil is in transition. We must drill like there’s no tomorrow. Any investor willing to extract is welcome,” he emphasized.
Despite its wealth in natural resources, Ghana continues to grapple with high public debt and ongoing instability in the energy sector. The government is betting on stronger public-private partnerships to revitalize this critical area of the economy.