President John Dramani Mahama has highlighted the key financial challenges crippling Ghana’s energy sector.
In his diagnosis during the State of the Nation Address, Mahama cited systemic issues such as revenue collection losses and non-compliance with the cash waterfall mechanism.
He also identified the mounting legacy debt as a major contributor to the sector’s financial distress.
These challenges have led to a significant financing shortfall, which has now risen to approximately $2.2 billion (GHS 334 billion) for 2025.
It has also significantly reduced funds available to support the operations of power generation and distribution companies, affecting the ability of independent power producers (IPPs) and other stakeholders to operate effectively.
President Mahama remarked that urgent measures must be implemented to reduce the deficit to sustainable levels and ultimately eliminate it to secure the country’s energy future.
To address these challenges, he has pledged to take decisive action to stabilize the economy.
These measures will require collaboration with stakeholders, including energy sector players, financial institutions, and regulatory bodies.
Despite the energy and economic challenges plaguing the country, the President assured that he is committed to leading the government to take every necessary step to reset the economy, get things back on track, and work with the people of Ghana to build the nation they desire.