President John Dramani Mahama has announced that Ghana aims to significantly reduce its $2.5 billion debt owed to independent power producers and gas suppliers by the end of the year.
Speaking at a regional energy forum in Ivory Coast, President Mahama noted that despite a previous agreement to restructure approximately $1 billion in legacy debt, arrears to service providers remain a persistent challenge for the country’s economy.
He identified inefficiencies in revenue collection at the state-owned Electricity Company of Ghana (ECG) as a major concern. The utility is currently experiencing losses of about 40% due to poor billing and collection systems.
To address these inefficiencies, the government plans to involve the private sector in the electricity billing process. Expressions of interest will be invited from private investors, and a cabinet decision will determine whether one or multiple partners will be engaged. The President emphasized the importance of ensuring local participation in the process..
Oil and Gas: “Drill Like There’s No Tomorrow”
Touching on the country’s oil resources, President Mahama urged companies to aggressively exploit oil and gas reserves before the global transition to renewable energy gathers pace.
“Oil is in transition and so everybody who has any assets should be pumping like there’s no tomorrow,” he said.
“I would lay a red carpet to anybody who wants to drill and pump oil to do so.”
The President’s remarks reflect a push to balance short-term energy security and economic recovery with longer-term energy sector reforms.