Energy Minister-Designate John Abdulai Jinapor has raised concerns about the growing debt burden in Ghana’s energy sector, describing it as a critical issue requiring urgent attention.
Speaking during his vetting before Parliament’s Appointments Committee on January 13, 2025, Mr. Jinapor revealed that the energy sector’s debt had escalated to over $3 billion as of January 12, 2025.
He noted that this increase compounded existing challenges, particularly the government’s financial obligations to Independent Power Producers (IPPs), which stood at $1.2 billion as of October 2024.
He further pointed out that the Mahama administration had left an energy sector debt of $2.1 billion as of August 31, 2017, underscoring the need for robust financial management to address the growing liabilities.
Mr Jinapor called for pragmatic solutions to resolve the debt crisis, ensuring the sustainability of the energy sector while safeguarding Ghana’s economic stability.
“When we left office on August 31, 2017, the debt was $2.1 billion. As of yesterday, January 12, 2025, the outstanding debt has exceeded $3 billion,” Jinapor stated.
The Energy Minister-Designate attributed the mounting debt to unaccounted-for power sales, calling for immediate measures to address the issue.