Energy sector debt hit GH¢80 billion – Jinapor raises alarm over escalating energy sector debt

The Minister for Energy and Green Transition, John Abdulai Jinapor, has raised concerns over the rapidly increasing debt within Ghana’s energy sector, warning that urgent action is needed to prevent a financial collapse.

Speaking at a meeting with Civil Society Organisations (CSOs) on March 18, 2025, Mr Jinapor disclosed that the sector’s liabilities have reached GH¢80 billion, with the Electricity Company of Ghana (ECG) alone accounting for over GH¢60 billion.

He described the situation as unsustainable and called for immediate measures to address the financial strain.

“The rate at which debts are piling up in the energy sector makes it imperative to take drastic measures. If we do not act now, we risk a major crisis,” Mr. Jinapor stated.

He identified financing as a major challenge and urged CSOs to contribute ideas and proposals to help restructure the sector’s financial obligations.

His remarks echo recent warnings from Finance Minister Dr. Cassiel Ato Forson, who, at a national economic dialogue on March 3, 2025, cautioned that Ghana’s energy sector debt could reach $9 billion (GH¢126 billion) by 2027 if urgent steps are not taken.

Dr Forson stressed the need for structural reforms to prevent the situation from worsening.

The International Monetary Fund (IMF) has also flagged Ghana’s energy sector as a major financial risk, reporting that legacy debts stood at $2.1 billion (GH¢29.4 billion), or 2.8% of Gross Domestic Product (GDP), as of December 2023.

With these growing concerns, Mr. Jinapor assured CSOs that the government is committed to finding sustainable solutions to stabilise the sector.

He reiterated that transparency and broad stakeholder engagement will be key in tackling the country’s energy challenges.