Policy think tank IMANI Centre for Policy and Education (IMANI-Africa) has urged Ghana’s political leadership to adopt a bipartisan approach in addressing the country’s ongoing energy sector challenges, amid concerns over the recent postponement of a new energy sector levy.
The call comes in the wake of the government’s decision to delay the implementation of a GHS1 energy sector levy, originally slated for June 9, now postponed to June 16, intended to mitigate the country’s US$3.1 billion energy sector debt.
Speaking on the issue, Minister of State in charge of Government Communications, Mr. Felix Kwakye Ofosu, stated that even if the Electricity Company of Ghana (ECG) were to collect 100% of revenue, it would still not be sufficient to resolve the accumulated debt, justifying the introduction of the levy.
However, Senior Vice President of IMANI-Africa, Mr. Kofi Bentil, criticized the move, describing the persistent energy sector debt as “a bipartisan problem of ineptitude”. According to him, such financial burdens should not be continually placed on Ghanaians through taxation.
“For over 20 years, we have heard endless analysis and predictions on energy economics and fuel dynamics from both sides of the political divide, but we have seen very little decisive action,” he said.
The new GHS1 levy will affect a wide range of petroleum products, including petrol, diesel, marine gas, heavy fuel, partially refined oil (naphtha), and liquefied petroleum gas (LPG).
Reflecting on Ghana’s energy history, Mr. Bentil recalled how analysts predicted an impending energy crisis, often referred to locally as ‘dumsor’, as early as President Mahama’s first term.
“We sat back, argued endlessly, and now we are paying the price for bad governance. Without a shift in how things are managed, especially in leadership and technical oversight, we are unlikely to see meaningful change,” he added.
Mr. Bentil emphasized the need for competent governance and the involvement of technocrats in shaping long-term, sustainable energy policies.
While he acknowledged that taxation may be necessary under current circumstances, he stressed that citizens would only be willing to comply if they are assured that such crises won’t recur.
“We supported deregulation. If a competent government transparently structures the sector and taxes us, we will pay, on the condition that these problems are not repeated,” he noted.
He also praised the introduction of the Energy Sector Levies Act (ESLA) in 2015, which consolidated multiple energy-related levies to help offset sector debts and finance liabilities tied to power and fuel supply.