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Home General News

Energy Sector Debt Crisis: Mahama Proposes Solutions for Stability and Growth

GhanaPoliticsOnline.com by GhanaPoliticsOnline.com
January 14, 2025
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President John Dramani Mahama has reaffirmed his dedication to addressing Ghana’s energy sector challenges and supporting independent power producers (IPPs) to strengthen the country’s electricity supply.

In a Facebook post on Monday, Mr. Mahama disclosed that he met with IPPs to discuss their contributions and reiterated the critical need for collaboration in tackling the pressing challenges faced by the energy sector.

“We must recognise the vital role that IPPs play in complementing our government’s efforts to harness the capital needed for energy generation,” he stated, emphasizing the importance of public-private partnerships in enhancing energy capacity.

He expressed concern over the financial difficulties faced by the Electricity Company of Ghana (ECG), highlighting its 40% commercial and technical losses as a significant issue that requires urgent attention. Mr. Mahama proposed adopting a transformative approach to reform the sector, focusing on transparency, competitiveness, and efficiency in billing and metering systems.

The president also addressed the energy sector’s mounting debts, which he attributed to mismanagement of funds under the Energy Sector Levy Act (ESLA), a policy his administration introduced to clear energy debts. He called for a renewed focus on proper allocation of revenues to drive growth and stability in the energy sector.

“Ghana is open for business again,” Mr. Mahama declared, inviting local and international investors to participate in revitalising the sector.

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The post, accompanied by the hashtags #MahamaThePresident, #InvestInGhana, and #PoweringOurFuture, underscores his vision for a more robust energy infrastructure to power Ghana’s future development.

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