Home News Ghana Clears $1.47 Billion Energy Sector Debt to Restore Stability and Investor Confidence
News

Ghana Clears $1.47 Billion Energy Sector Debt to Restore Stability and Investor Confidence

Share
Share

The Government of Ghana has announced that it paid a total of 1.47 billion US dollars in 2025 to settle long standing debts in the energy sector, a move officials say has restored stability to the country’s power system and rebuilt international confidence.

According to the Ministry of Finance, a major component of the payments was 597.15 million dollars used to fully reinstate a World Bank partial risk guarantee that had been exhausted under the previous administration. The guarantee is considered critical to Ghana’s energy architecture, as it underpinned nearly 8 billion dollars in private investment for the Offshore Cape Three Points gas field and the Sankofa Gas Project. Its restoration is expected to reassure lenders and investors of Ghana’s renewed commitment to honouring contractual obligations.

In addition, the government settled all outstanding gas supply invoices owed to key energy partners ENI and Vitol, paying approximately 480 million dollars. These payments resolved arrears that had strained relations with suppliers and threatened the reliability of gas supplies for power generation.

The state also cleared around 393 million dollars in legacy debts owed to Independent Power Producers, including major operators such as Karpowership and Cenpower. These arrears had accumulated over several years and were widely seen as a major risk to electricity stability and private sector participation in the power market.

Officials say the comprehensive settlement, completed within President John Dramani Mahama’s first year in office, represents a decisive reset of the energy sector. Years of unpaid obligations had undermined investor confidence, complicated access to financing, and raised concerns about potential power disruptions.

To prevent a recurrence, the government says it has made budgetary provisions to keep future energy payments current and has renegotiated agreements with upstream gas partners to improve domestic gas production and affordability. These measures are intended to reduce reliance on expensive fuel imports and strengthen the long term financial sustainability of the power sector.

By clearing the debt backlog, the government says it has brought an end to an era of unchecked arrears accumulation and laid a stronger foundation for stable electricity supply, renewed investment, and broader economic growth.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

Canada futures edge higher as markets steady amid geopolitical jitters

Futures tied to Canada’s main stock index edged higher as investors showed cautious optimism despite ongoing geopolitical tensions linked to the Middle East...

Russia’s Lavrov says regime change plans in Iran and Venezuela were about oil

Russian Foreign Minister Sergey Lavrov has accused the United States of pursuing regime change efforts in both Iran and Venezuela primarily to gain...

Related Articles

Kremlin denies Putin is cut off from bad news after blogger’s criticism goes viral

The Kremlin has rejected suggestions that President Vladimir Putin is insulated from...

Lilly’s obesity pill Foundayo gets 1,390 prescriptions in debut week

Eli Lilly’s newly launched obesity pill Foundayo recorded 1,390 prescriptions in its...

Colombia’s Petro will travel to Caracas next week

Colombian President Gustavo Petro will travel to Caracas next week for talks...

Nigeria urges airlines to hold off flight suspensions over jet fuel price spike

Nigeria has urged domestic airlines to refrain from suspending flights or increasing...