John Abdulai Jinapor, the Minister for Energy and Green Transition, has expressed concerns about the escalating debt in Ghana’s energy sector, urging immediate action to prevent a financial collapse.
During a meeting with Civil Society Organisations (CSOs) on March 18, 2025, Mr. Jinapor revealed that the sector’s liabilities have now reached GH¢80 billion, with the Electricity Company of Ghana (ECG) responsible for over GH¢60 billion of that total.
He described the situation as unsustainable and called for urgent measures to alleviate the financial burden.
“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 highlighted financing as a key challenge and called on civil society organizations (CSOs) to contribute ideas and proposals to help restructure the sector’s financial obligations.
His comments echo recent warnings from Finance Minister Dr. Cassiel Ato Forson, who, during a national economic dialogue on March 3, 2025, cautioned that Ghana’s energy sector debt could reach $9 billion (GH¢126 billion) by 2027 unless immediate action is taken.
Dr. Forson emphasized the urgent need for structural reforms to prevent the situation from worsening.
The International Monetary Fund (IMF) has also flagged Ghana’s energy sector as a significant financial risk, reporting that legacy debts totaled $2.1 billion (GH¢29.4 billion), or 2.8% of GDP, as of December 2023.
Amid these growing concerns, Mr. Jinapor reassured CSOs that the government is committed to finding sustainable solutions to stabilize the sector.
He reiterated that transparency and broad stakeholder engagement will be crucial in addressing the country’s energy challenges.
